Inflation Cools in October

Inflation magnifying glass

CBJ — The national inflation rate came in at 1.4% on a year-over-year basis in October, following a 1.6% rate in September. The slight differentiation was primarily due to smaller gasoline price increases.

In a report released by Statistics Canada, shelter and transportation prices contributed the most to October’s rise in its consumer price index, while clothing and footwear prices showed a decline when compared with October 2016.

Transportation prices were up by 3% on a year-over-year basis, following a 3.8% increase in September. The slowdown was led by gasoline prices, which increased 6.5% year-over-year in October after increasing about 14% in the previous month in the aftermath of Hurricane Harvey.

The inflation rate has remained below the Bank of Canada’s stated target of two per cent, even as the Canadian economy enjoyed a surge earlier this year.