October 21, 2025
RED FM News Desk
Canada’s inflation rate accelerated sharply to 2.4% in September, up from 1.9% in August, driven primarily by annual shifts in gasoline prices and continued steady increases at the grocery store, according to Statistics Canada.
The 0.5 percentage point jump in the annual inflation rate was slightly higher than what economists had anticipated.
Statistics Canada noted that while gasoline costs saw a month-over-month increase in September, the significant year-over-year drop in prices at the pump compared to the same period last year resulted in a higher annual inflation comparison.
Meanwhile, grocery prices saw an annual increase of 4% in September, up from 3.5% in August.
According to Statistics Canada, Canadians saw the largest year-over-year increase in their grocery bills for fresh vegetables, sugar, and confectionery products in September. The agency also pointed out that lower supplies of both beef and coffee are contributing to food inflation.
This September inflation report will be the final key piece of price data before the Bank of Canada makes its next interest rate decision on October 29.
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