Canada's inflation rate dipped slightly last month. It dropped from 3.5 per cent in August to 3.4 per cent in September, but gas and food prices continued to push overall prices upwards, Statistics Canada reported Friday.
According StatsCan, the September dip was a "slightly slower pace than the August 3.5 per cent increase, when the pace of consumer price growth was the highest since March 2003."
Gasoline prices also spiked last month, however they are expected to stabilize or dip as the price of oil drops.
"The CPI excluding gasoline increased 2.2 per cent in the 12 months to September," said a Statistics Canada media release.
"Stripping away all energy components, the CPI advanced 1.9 per cent .... Prices at the pump rose 26.5 per cent in September and varied considerably during the month."
Statistics Canada noted that transportation cost increases were mitigated by a 9.3 per cent decline in prices to buy and lease vehicles. That was the largest drop since 1956.
The Statistics Canada report also shows that food has become one of the major factors pushing inflation upwards. Food prices overtook transportation costs as the second major contributor to the 12-month change in the CPI last month, StatsCan reported.
According to StatsCan food prices:
- were up 2.4 per cent compared with the same period in 2007
- rose 5.6 per cent in the 12 months to September, an increase from the 4.5 per cent rise recorded in August
- were forced upward by pressure on prices for bakery and cereal products, which jumped 15.5 per cent
The StatsCan report also found that New Brunswick had the lowest inflation rate in the country (dropping from 2.4 per cent to 2.6 per cent), while Prince Edward Island had the highest rate, which jumped from 4.8 per cent in August to 5.5 per cent last month.
British Columbia's inflation rate remained unchanged at 3.3 per cent, while Quebec saw its rate dip slightly from 3.2 to 3.1 per cent in the same period. Overall prices also decreased in Ontario, from 3.7 per cent in August to 3.5 per cent in September.
