Inflation across Canada rose an annualized 2% in October amid declining interest rates across the country.
Statistics Canada said that the Consumer Price Index (CPI) increased 2% year-over-year in October, up from 1.6% annualized growth in September.
The 2% rise in October’s inflation rate matches the annualized target of the Bank of Canada and shows that consumer prices are rising at a more modest pace after spiking in recent years.
Inflation in Canada peaked at an annualized rate of 8.1% in June 2022.
The Bank of Canada sharply raised interest rates to lower inflation but has begun to reverse course in recent months, lowering interest rates a cumulative 1.25% since June of this year.
Exerting downward pressure on inflation in October of this year were gasoline prices that fell 4% year-over-year during the month.
The all-items CPI, excluding gasoline prices, rose 2.2% in October, the same growth rate seen in August and September of this year.
Prices for goods across Canada rose 0.1% year-over-year in October, while shelter prices climbed 4.8% higher from a year ago.
At the same time, prices for food purchased from stores rose 2.7% in October from a year earlier. It was the third consecutive month that prices for groceries outpaced overall inflation.
On a monthly basis, CPI in Canada rose 0.4% in October from September.