Finance
13 sourcesUpdated Oct 19, 20261 min read
Canada’s annual inflation rate rose to 3.1% in September, with higher gasoline and energy prices driving the increase; gasoline prices were up 27.8% year over year. Underlying inflation eased, with the Bank of Canada’s preferred core measures averaging 1.85%, their slowest pace in six years, while prices excluding gasoline rose 2.2%. The split suggests price pressures remain concentrated in energy rather than broadly accelerating, easing pressure on the central bank to raise rates, though it has said it could act if inflation spreads. The report precedes the Bank of Canada’s October 28 rate decision, and the Canadian dollar weakened after the data as markets reassessed the likelihood of a rate hike.
