Canada's Consumer Price Index Growth Slows in September 2024

In September 2024, the Consumer Price Index (CPI) in Canada increased by 1.6% compared to the same month in the previous year. This represents a decrease from the 2.0% year-over-year increase recorded in August 2024. The primary factor contributing to this slowdown was a significant drop in gasoline prices, which fell by 10.7% in September compared to a 5.1% decrease in August.

Excluding gasoline, the all-items CPI rose by 2.2% in September, maintaining the same rate of increase as in August. Despite the deceleration in the rate of price increases, overall price levels remain high. Since September 2021, the CPI has risen by 12.7%, with notable increases in essential expenses such as rent, which rose by 21.0%, and food purchased from stores, which increased by 20.7% over the same three-year period.

On a month-to-month basis, the CPI decreased by 0.4% in September, following a 0.2% decline in August. The monthly and yearly movements in September were primarily influenced by the reduction in gasoline prices.