Canada Taux d'inflation

The annual inflation rate in Canada fell to 1.6% in September of 2024 from 2% in the previous month, the lowest since February of 2021, and well below the market consensus of 1.9%. It was the second consecutive period that CPI inflation was under the Bank of Canada’s target of 2%, raising bets that Canada’s monetary authority is due to extend its cutting cycle. The sharp decline was attributed to lower prices for gasoline (-10.7% vs -5.1% in August) due to lower crude oil prices, which extended the deflationary momentum for transportation (-1.5% vs -0.1%). While remaining high, price growth slowed for rent (8.2% vs 8.9%), allowing inflation to ease for shelter (5% vs 5.3%). Still, inflation edged up for food (2.8% vs 2.7%) amid an increase in restaurants (3.5% vs 3.4%) and steady growth in grocery stores (2.4%). Meanwhile, the trimmed-mean core rate held at 2.4%. From the prior month, Canadian consumer prices fell by 0.4%.