Inflation dips for third consecutive month in September
You might call it a mixed blessing. You still paid more for goods and services in September than a year ago, but not as much as in August.
Statistics Canada’s latest report on inflation, the Consumer Price Index Report, said inflation slowed to 6.9 per cent in September.
That’s a 0.1 per cent drop from August, but it still meant Canadians paid 6.9 per cent more than they did in September 2021.
While gas prices decelerated, Canadians continued to pay more at the grocery store. Food bought at stores climbed 11.4 per cent year over year, a tenth monthly increase and at the fastest pace since August 1981.
Statistics Canada blamed unfavourable weather, the higher cost of fertilizer and natural gas, and continued instability from Russia’s invasion of Ukraine.
The price of meat rose 7.6 per cent, 9.7 per cent for dairy products, 11.8 per cent for fresh vegetables, and fresh vegetables cost consumers 11.8 per cent more.
As for gas prices, drivers are still paying 13.2 per cent more than they did a year ago, but inflation for gas was 7.4 per cent, following a 9.4 per cent decline in August. The report credited an increase in the global supply of oil.
Without gas and food, inflation was 5.4 per cent year over year, while the average hourly wage increased 5.2 per cent, still not enough to keep pace with increased prices.
Compared with August, prices for furniture, durable goods, and passenger vehicles rose at a faster pace.
The ongoing shortage of semiconductor microchips is partly to blame for an 8.4 per cent increase in the cost of a new car or pickup truck.
Also up in September, durable goods rose from 6 per cent in August to 6.7 per cent last month, accommodation costs were up 5.8 per cent, and students paid 2.3 per cent more for tuition.
Of the G7 nations, inflation in Canada was the third lowest. It was 5.5 per cent in France last month, while Japan’s rate was just 2 per cent.
The United Kingdom had the highest rate once again at 10.1 per cent. Germany’s rate was ten per cent, 8.9 per cent in Italy, 8.2 per cent in the U.S., and ten per cent in Germany.