Statistics Canada building and signs are pictured in Ottawa on Wednesday, July 3, 2019. THE CANADIAN PRESS/Sean Kilpatrick

Statistics Canada building and signs are pictured in Ottawa on Wednesday, July 3, 2019. THE CANADIAN PRESS/Sean Kilpatrick

Canadian annual inflation rate 1.9% last month as lower gas prices weigh on rate

Canadians did, however, pay more for mortgage interest costs

The annual inflation rate was 1.9 per cent in September for a second-straight month, keeping the indicator close to the Bank of Canada’s ideal two per cent target.

The new numbers released Wednesday in Statistics Canada’s latest consumer price index report show that price growth was once again held back by lower gas prices.

Inflation has now stayed at 1.9 per cent or higher for seven consecutive months.

Economists on average had expected a reading of 2.1 per cent for September, according to financial markets data firm Refinitiv.

The country’s price picture, on its own, is not applying pressure on the inflation-targeting Bank of Canada to adjust interest rates. The central bank’s next rate announcement is scheduled for Oct. 30.

Statistics Canada said a 10 per cent drop in gasoline prices compared with last year continued to weigh on the overall inflation rate. Gas prices, year-over-year, were down 10.2 per cent in August and 6.9 per cent in July.

Excluding pump prices, the inflation reading for September was 2.4 per cent for a third-straight month.

READ MORE: Canadian inflation decelerates to 1.9% as gas prices weaken

Upward momentum in price growth was also held back in September by lower costs, year-over-year, for internet access services, tuition fees and telephone services.

Canadians did, however, pay more for mortgage interest costs, vehicle insurance and auto purchases last month compared to the previous year.

Shoppers shelled out 3.4 per cent more for passenger vehicles last month than they did a year earlier as price growth in the category exceeded 2.5 per cent for a seventh-straight month, the report said. Statistics Canada called it the “strongest continuous stretch of growth” in the category since early 2017.

Year-over-year mortgage interest costs have increased through 2019 and were up another 7.5 per cent in September. The report said the growth has followed a series of interest rate hikes by the Bank of Canada between July 2017 and October 2018.

In terms of downward forces, the report said tuition fees decreased 3.6 per cent last month for the category’s first year-over-year decline since its creation in 1973. The drop was driven by an 8.9 per cent decrease in Ontario, where the provincial government cut tuition for the 2019-20 academic year.

The average of Canada’s three measures for core inflation, which are considered better gauges of underlying price pressures by omitting volatile items like gasoline, moved up slightly to 2.1 per cent last month from two per cent in August. The core readings are closely monitored by the Bank of Canada.

Andy Blatchford, The Canadian Press


Like us on Facebook and follow us on Twitter.

Just Posted

Mark Perry in concert at the old Driftwood School (Marty Clemens photo)
Mark Perry releases new single ahead of Northwest album.

“Golden Spruce” tells the story of a forester who cut down an old-growth Sitka Spruce on Haida Gwaii

Five rehabilitated grizzly bears were released this month into the Bella Coola area. The Northern Lights Wildlife Society will also be delivering 36 black bears to areas across the province where they were previously found. “They’re ready to go and they’re already trying to get out,” says Angelika Langen. “We feel good when we can make that possible and they don’t have to stay behind fences for the rest of their lives.” (Northern Lights Wildlife Society Facebook photo)
Suspected methamphetamine and scale seized by police. (Terrace RCMP photo)
Terrace RCMP seize guns, ammo, suspected narcotics

Man released after court appearance

Coho is one of many fish species that will benefit from a project to assess fish passage in the Falls River Watershed and offer options for improved connectivity and habitat restoration. The project will be delivered with funding from the Fish and Wildlife Compensation Program announced on June 8. (Photo: supplied by FWCP, istock, M.Haring)
More than $2.1 million for Northcoast fish and wildlife projects

Falls River Watershed SE of Prince Rupert to have fish passage and habitat study

Taylor Bachrach, NDP MP for Skeena-Bulkley Valley addresses Parliament on June 7, in call for the federal government to stop fighting Indigenous children in court and to implement the Truth and Reconciliation Commission’s Call to Action. (Image: supplied from Facebook)
NDP motion calling for immediate reconciliation action passes

Skeena-Bulkley MP Taylor Bachrach addresses federal Parliament

People line up to get their COVID-19 vaccine at a vaccination centre, Thursday, June 10, 2021 in Montreal. THE CANADIAN PRESS/Ryan Remiorz
Vaccines, low COVID case counts increase Father’s Day hope, but risk is still there

Expert says people will have to do their own risk calculus before popping in on Papa

Athena and Venus, ready to ride. (Zoe Ducklow - Sooke News Mirror)
Goggling double-dog motorcycle sidecar brings smiles to B.C. commuters

Athena and Venus are all teeth and smiles from their Harley-Davidson sidecar

Kimberly Bussiere and other laid-off employees of Casino Nanaimo have launched a class-action lawsuit against the Great Canadian Gaming Corporation. (Chris Bush/News Bulletin)
B.C. casino workers laid off during pandemic launch class-action lawsuit

Notice of civil claim filed in Supreme Court of B.C. in Nanaimo against Great Canadian Gaming

A Photo from Sept. 2020, when First Nations and wild salmon advocates took to the streets in Campbell River to protest against open-pen fish farms in B.C.’s waters. On Dec. 17, federal fisheries minister Bernadette Jordan announced her decision to phase out 19 fish farms from Discovery Islands. Cermaq’s application to extend leases and transfer smolts was denied. (Marc Kitteringham/Campbell River Mirror)
Feds deny B.C.’s Discovery Island fish farm application to restock

Transfer of 1.5 million juvenile salmon, licence extension denied as farms phased out

John Kromhoff with some of the many birthday cards he received from ‘pretty near every place in the world’ after the family of the Langley centenarian let it be known that he wasn’t expecting many cards for his 100th birthday. (Special to Langley Advance Times)
Cards from all over the world flood in for B.C. man’s 100th birthday

An online invitation by his family produced a flood of cards to mark his 100th birthday

Join Black Press Media and Do Some Good
Join Black Press Media and Do Some Good

Pay it Forward program supports local businesses in their community giving

FILE – Nurse Iciar Bercian prepares a shot at a vaccine clinic for the homeless in Calgary, Alta., Wednesday, June 2, 2021. THE CANADIAN PRESS/Jeff McIntosh
B.C. scientists to study effectiveness of COVID vaccines in people with HIV

People living with HIV often require higher doses of other vaccines

A 50-year-old woman lost control of her vehicle Tuesday, June 15, crashing through a West Vancouver school fence that surrounds playing children. (West Vancouver Police)
Driver ticketed for speeding near B.C. school crashes into playground fence days later

‘It’s an absolute miracle that nobody was injured,’ says Const. Kevin Goodmurphy

Most Read