Canada's inflation rate has increased to 3.1 percent in September, driven by higher fuel prices. The main contributor to this rise is the 27.8 percent increase in gasoline prices compared to the previous month.
What happened
The acceleration in prices was primarily driven by the significant increase in gasoline prices, which rose by 27.8 percent in September. This is compared to a 22.8 percent increase in August, when the inflation rate was at 3 percent. Additionally, prices for fuel oil and other fuels saw a substantial year-over-year increase of 57.8 percent in September.
Excluding gasoline, the inflation rate rose by 2.2 percent, which is slightly lower than the 2.4 percent increase in August. The inflation rate excluding energy varied across provinces, with Nova Scotia seeing a rate of 3.3 percent, and Prince Edward Island and New Brunswick at 2.6 percent. In contrast, Newfoundland and Labrador had an inflation rate of 2.4 percent, compared to the national rate of 2.1 percent.
Food prices rose by 1.7 percent year-over-year in September, which is a slower increase compared to the 2.8 percent rise in August. This slowdown was largely due to a decline in the prices of fresh vegetables and sugar and confectionery. However, fresh and frozen beef prices saw an increase of 8.7 percent.
Shelter prices also rose by 1.8 percent year-over-year, with homeowners' home and mortgage insurance increasing by 4.9 percent, and homeowners' maintenance and repairs rising by 1.2 percent. Tuition fees, which are priced annually in September, increased by 2.4 percent in 2026, with varying rates across provinces.
