September Inflation Falls to 1%
CBJ — Figures released by Statistics Canada indicate the annual rate of inflation dropped to 1.0% in September due to lower gas prices. However, the cost of groceries and most other consumer products were actually higher.
The consumer price index for September rose 1.0% compared with a year ago, marking a smaller increase than the 1.3% posted in August.
Prices were up in seven of the eight major categories, with the overall increase driven by higher food prices.
The price of food was up 3.5% compared with a year ago. The index for recreation, education and reading was up 2.5%, while the clothing and footwear category gained 1.2%.
Only the transportation sector, which includes gasoline, was lower as it fell 3.5% from a year ago due to an almost 20-cent per litre decline in gasoline prices compared with last year.
Meanwhile earlier in the week, the Bank of Canada held its key interest rate this week at 0.5% as it downgraded its 2016 and 2017 outlook for the economy due to the continued fallout of low energy prices.
Statistics Canada says prices rose in eight provinces with Saskatchewan posting the largest increase with a gain of 1.4% for the year. Ontario gained 0.9%, while Quebec increases 1.0%.
Prince Edward Island saw prices drop 0.8% compared with a year ago, while Nova Scotia reported no change.