Canada’s inflation rate was 6.9 per cent in October, matching the pace seen the previous month.
Economists had been expecting the rate to increase due to an uptick in the price of gasoline last month, but instead the data released by Statistics Canada showed the cost of living went up at the same annual pace in October as it was the previous month.
After easing off in September, gasoline prices increased again in October, pushing their annual change up to 17.8 per cent in the past 12 months. That’s up from a 13.2 per cent annual pace previously.
The price of a fill-up continues to add fuel to Canada’s inflationary fire, but another major source of consumer consternation — the cost of food — is showing signs that it may finally be headed in the opposite direction.
Food prices increased by 10.1 per cent in the year up to October. That’s still ahead of the overall rate, but a slight decrease from the 10.3 per cent pace seen the previous month. That’s an encouraging sign that Canadians may finally soon see some relief on their grocery bills.
“Faster price growth for gas and mortgage interest costs were moderated by slowing price growth for food,” the data agency said.
