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Canada's Annual Inflation Accelerates to 2.4% in September, Above Forecast

BY MT Newswires | ECONOMIC | 10/21/25 08:47 AM EDT

08:47 AM EDT, 10/21/2025 (MT Newswires) -- The Canadian consumer price index rose 2.4% on a year-over-year basis in September, up from a 1.9% year-over-year increase in August, said the country's statistical agency Tuesday.

September's CPI was higher than the 2.2% year-over-year consensus figure provided by Scotiabank.

On a year-over-year basis, gasoline prices fell less in September (-4.1%) compared with August (-12.7%) due to a base-year effect, leading to an acceleration in headline inflation, stated Statistics Canada in a statement. Excluding gasoline, the CPI rose 2.6% year over year in September, after increasing 2.4% in August.

A slower year-over-year decline in prices for travel tours (-1.3% versus -9.3% in August) and a larger increase in prices for food purchased from stores (+4.0%) also contributed to the upward pressure in the all-items CPI in September, added StatsCan.

Consumers paid 4.0% more year over year for food purchased from stores in September, following a 3.5% increase in August. Faster price growth was driven by increased prices for fresh vegetables (+1.9% in September, compared with -2.0% in August) and sugar and confectionery (+9.2% in September, compared with +5.8% in August).

The non-seasonally adjusted CPI rose 0.1% month over month in September, which was higher than the 0.1% month-over-month consensus deflation provided by Scotiabank. On a seasonally adjusted monthly basis, the CPI was up 0.4%.

The monthly and quarterly CPI reports, reported by StatsCan, measure the index level of prices paid by consumers for a basket of goods and services such as food, energy, vehicle, medical care, apparel, and housing. The core measure, which excludes food and energy due to their volatility, is closely watched by markets and the Bank of Canada (BoC) as a sign of underlying inflation pressures.

The BoC is slated to make its policy decision on Oct. 29.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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