Canada's inflation slowed to 3.1%
The main reason is falling gasoline prices.
Statistics Canada, in its regular monthly report, said inflation slowed to 3.1% in October — down from September's 3.8%. It was largely due to lower gasoline prices (-7.8%) in October. Excluding gasoline, the consumer price index reached 3.6% in October after a 3.7% reading in September.
Over the past year, food prices have risen by 5.4%. While this is still higher than the overall inflation rate, it is below the 5.8% annualized rate seen in September. Food price growth has slowed for the fourth consecutive month.
Prices for services: rent, tourism
But prices for services rose 4.6% year-on-year after rising 3.9% in September.
Canadians continue to feel the impact of rising rental prices, which increased at a faster annualized rate in October (plus 8.2%) than in September (plus 7.3%). The largest increases in rental prices were seen in:
- Nova Scotia (plus 14.6%);
- Alberta (plus 9.9%);
- British Columbia (plus 9.1%);
- Quebec (plus 9.1%).
Mortgage interest costs are up 30.5% from a year ago.
Property taxes rose 4.9% year-over-year. The Canada-wide increase in October 2023 was the largest since October 1992, with homeowners paying more in all but one province. Manitoba property taxes (-0.3%) declined for the third consecutive year, mainly due to a decrease in the provincial education tax.
Travel prices rose 11.3% year-on-year in October, following a 2.2% decline in September. At the same time, the faster price growth was mainly due to trips to the United States.
