Canada's Inflation Rises to 3.1% as Energy Prices Accelerate

Canada’s annual inflation rate rose to 3.1% in September, edging above the Bank of Canada’s target range as higher fuel prices drew attention to its Oct. 28 interest-rate decision.

The consumer price index had risen 3.0% from a year earlier in August. Gasoline prices rose 27.8% year over year in September, compared with 22.8% in August. Prices for the “fuel oil and other fuels” category climbed 57.8%, up from 43.7%. Overall energy prices rose 19.0%, compared with 15.4% a month earlier.

Outside gasoline, annual inflation eased to 2.2% from 2.4% in August. The overall index rose 0.1% from August, or 0.4% after seasonal adjustment. Food prices at stores increased 1.7% from a year earlier, their slowest annual rise since May 2024.

The Bank targets 2% inflation within a 1% to 3% range. It held its overnight policy rate at 2.25% on Sept. 2. With the next consumer price index release scheduled for Nov. 16, September’s reading is the last scheduled before the Bank announces its rate decision and Monetary Policy Report at 9:45 a.m. ET (13:45 UTC) on Oct. 28.