September’s inflation rate fell to 1.6 percent, year over year, Statistics Canada reported yesterday. While that was lower than the Bank of Canada’s 2.0 percent inflation goal for September, there were cautionary notes in the report from the federal agency.
First of all, the national inflation rate reduction was led by year-over-year lower gasoline prices, which fell 10.7 percent in September. But rental prices rose by 8.2 percent, while food prices continued to grow at a rate faster than inflation. Excluding the gasoline price drop, the Consumer Price Index came in at 2.2 percent, the same as August.
