Canada's CPI Accelerates in September on Higher Gasoline Prices, but Less Than Expected

09:00 AM EDT, 10/19/2026 (MT Newswires) -- Canada's annual consumer price index edged up to 3.1% in September from 3.0% in August, largely reflecting a sharper rise in gasoline prices, which surged 27.8% yearly after increasing 22.8% in the previous month, according to the country's statistical agency on Monday. Excluding gasoline, CPI eased to 2.2% annually from 2.4% in August, with slower price growth in travel tours and groceries cushioning the impact of rising fuel costs on overall inflation, Statistics Canada wrote in a statement. September's CPI was slightly lower than the 3.2% annual consensus figure provided in a Bloomberg survey. Today's CPI suggests the Bank of Canada has little need to rush into a rate hike, allowing policymakers more time to assess developments in US trade relations before tightening policy further. The CPI rose 0.1% month over month on a non-seasonally adjusted (NSA) basis, while the seasonally adjusted index increased 0.4% on the month, added StatsCan. The Bloomberg survey saw NSA CPI at 0.2% on the month. Food price pressures continued to subside, with grocery prices increasing 1.7% annually in September, compared with 2.8% in August, marking the slowest annual rise since May 2024. Lower prices for fresh vegetables (-2.9%) and sugar and confectionery (-2.7%) helped drive the deceleration. However, despite the year-over-year slowdown in prices for groceries, prices have increased 33.0% since September 2020. In contrast, shelter inflation picked up slightly, rising to 1.8% year over year from 1.5% in August. The monthly and quarterly CPI reports, reported by StatsCan, measure the index level of prices paid by consumers for a basket of goods and services such as food, energy, vehicle, medical care, apparel, and housing. The core measure, which excludes food and energy due to their volatility, is closely watched by markets and the BoC as a sign of underlying inflation pressures.