Canada inflation climbs to 2.4% in Sept as groceries and gas rise

Ottawa — Statistics Canada said Tuesday that Canada’s annual inflation rate accelerated to 2.4 percent in September, up from 1.9 percent in August, a rise officials attributed largely to higher gasoline and grocery costs. The report provides the Bank of Canada with its final inflation snapshot ahead of the central bank’s interest rate decision on Oct. 29.

Statistics Canada said gasoline prices rose modestly month to month in September, but because pump prices had fallen sharply at the same time last year the annual comparison pushed overall inflation higher. Grocery prices increased four percent year over year, accelerating from a 3.5 percent gain in August. The agency flagged rising costs for fresh vegetables and sugar and confectionary goods and said short supplies of beef and coffee were also contributing to food inflation.

Core inflation measures remained elevated. CPI excluding food and energy rose 2.4 percent, while CPI excluding gasoline was 2.6 percent. Measures that strip out volatile components showed underlying price pressures above the Bank of Canada’s 2 percent target, with the median CPI at 3.2 percent and the trimmed mean at 3.1 percent. Those core gauges are...