Canada CPI Eases to 2.2% in October, Slightly Above Expectations

08:47 AM EST, 11/17/2025 (MT Newswires) -- Canada's consumer price index rose 2.2% on a year-over-year basis in October, down from a 2.4% increase in September, said the country's statistical agency on Monday.

October's CPI was higher than the 2.1% year-over-year consensus figure provided by MUFG.

The all-items CPI decelerated largely due to gasoline prices, which fell at a faster pace year over year in October (-9.4%) compared with September (-4.1%), noted Statistics Canada in a statement. Excluding gasoline, the CPI rose 2.6% year over year in October, matching the increase in September.

Slower growth in grocery prices further contributed to the deceleration in the CPI in October, which was moderated by higher prices for cellular phone plans, added StatsCan.

The CPI rose 0.2% month over month on a non-seasonally adjusted basis in October. On a seasonally adjusted monthly basis, the CPI was up 0.1%.

Prices at the pump fell at a faster pace year over year in October, resulting from a 4.8% month-over-month decline in October. The monthly decline was largely due to a switch to cheaper winter blends, as well as lower crude oil prices amid continued concerns of oversupply.

On a month-over-month basis, grocery prices fell 0.6% in October, the largest decline since September 2020 (-1.1%).

On a monthly basis, the index of prices for cellular services rose 8.2% in October due to price increases from several wireless service providers.

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 as a sign of underlying inflation pressures.

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