Inflation Up 0.5% in September
CBJ — The annual inflation rate moved up by 0.5% in September compared with the same time in 2019.
Despite the increase it’s not likely to have any impact whatsoever on the Bank of Canada in terms of changing its overnight trendsetting rate. The Bank will update its economic outlook next week but has already gone on record as saying the 0.25% rate won’t be changing.
The consumer price index for food was up 1.6%, down from the 1.8% recorded in August. Automobile prices bumped upwards 2.7% and housing gained 2.6%.
There was a 4% decline in the back-to-school shopping season, which comes as no surprise with some parents electing to have their children home schooled during the pandemic.
Air transportation prices fell by 3.2% last month compared with a large 16% decline in August.
Gasoline prices were down almost 11% from September of last year with demand much lower with traffic volumes noticeably down as more people work from home, or were laid off.