Close X
Monday, November 11, 2024
ADVT 
National

Statistics Canada says annual inflation rate slowed to 3.1% in October

Darpan News Desk The Canadian Press, 21 Nov, 2023 10:40 AM
  • Statistics Canada says annual inflation rate slowed to 3.1% in October

The inflation rate slowed to 3.1 per cent on a year-over-year basis, down from 3.8 per cent in September, as the price of gasoline fell, Statistics Canada said Tuesday.

The agency said the price drivers paid for gasoline in October fell 7.8 per cent from a year earlier compared with a 7.5 per cent increase in September, driven partly by a spike in gasoline prices in October 2022 after OPEC announced production cuts.

Excluding gasoline, Statistics Canada says the consumer price index was up 3.6 per cent for October, following a 3.7 per cent increase for September.

Prices for goods were up 1.6 per cent, while prices for services were up 4.6 per cent, largely due to higher prices for travel tours, rent and property taxes and other special charges.

Bank of Montreal chief economist Douglas Porter said the inflation report drives home the point that there is no need for further rate hikes by the Bank of Canada, especially with the economy already struggling to grow at all and underlying inflation calming.

"However, before the bank can even begin seriously considering rate relief, we'll need to see more evidence that services inflation is also moderating—that could be at least another six months down the road," Porter wrote in a note to clients.

Statistics Canada said the largest contributors to inflation continued to be mortgage interest costs, food purchased from stores and rent.

Mortgage interest costs were up 30.5 per cent compared with a year ago, while the cost of rent was up 8.2 per cent.

While grocery prices rose faster than overall inflation, Statistics Canada said the pace continued to slow. Grocery prices were up 5.4 per cent year-over-year in October compared with a 5.8 per cent move higher in September.

The inflation report came ahead of the federal government's fall economic update expected this afternoon.

The decline in inflation should be welcome news for the Bank of Canada as it looks for evidence of a sustained slowdown in consumer price growth.

The central bank opted to hold its key interest rate steady at five per cent at its last rate decision, but it has said it is prepared to raise rates again if needed to bring inflation under control.

Bank of Canada governor Tiff Macklem is scheduled to give a speech on Wednesday to the Saint John Region Chamber of Commerce on the high cost of inflation, while the central bank's final interest rate decision for the year is set for Dec. 6.

 

MORE National ARTICLES

Surrey councillor says to move past back and forth on Surrey police transition

Surrey councillor says to move past back and forth on Surrey police transition
A Surrey councillor says it's time the city's mayor and supporters "get past" their opposition to the Surrey Police Service and lead Surrey and its police board toward a transition away from the R-C-M-P. Mayor Brenda Locke opposes the switch to a municipal force but councillor Linda Annis says "that ship has sailed," and urges Locke to work quickly on the hand over.

Surrey councillor says to move past back and forth on Surrey police transition

Indian PM, in meeting with Trudeau, rebukes Canada on Sikh independence vote

Indian PM, in meeting with Trudeau, rebukes Canada on Sikh independence vote
A statement released by India's Ministry of External Affairs says Modi told Canadian Prime Minister Justin Trudeau on the sidelines of this weekend's G20 summit in New Delhi that progress in the two countries' relationship requires "mutual respect and trust."  

Indian PM, in meeting with Trudeau, rebukes Canada on Sikh independence vote

B.C. caps allowable rent increases at 3.5 per cent, 2 points lower than inflation

B.C. caps allowable rent increases at 3.5 per cent, 2 points lower than inflation
The British Columbia government has set the allowable rent increase for next year at 3.5 per cent. The rate is more than two percentage points below the 12-month average inflation rate of 5.6 per cent.   

B.C. caps allowable rent increases at 3.5 per cent, 2 points lower than inflation

Replacement plane en route to India to bring Trudeau, Canadian delegation home

Replacement plane en route to India to bring Trudeau, Canadian delegation home
Senior government sources said a technician is headed to India with the part needed to fix the mechanical issue on the original plane, and that the replacement plane will take the Canadian delegation home if the technician is not able to fix the issue. 

Replacement plane en route to India to bring Trudeau, Canadian delegation home

B.C. sets up climate emergency task force amid wildfire crisis

B.C. sets up climate emergency task force amid wildfire crisis
British Columbia Premier David Eby says he's launching an expert task force into wildfires, drought and heat emergencies that have hammered the province. Eby, who's in the B.C. Interior touring wildfire zones, says the province is still focused on the fire battle, but it also needs to improve prevention and response measures.

B.C. sets up climate emergency task force amid wildfire crisis

Three people injured, suspect in custody following stabbings in Vancouver's Chinatown

Three people injured, suspect in custody following stabbings in Vancouver's Chinatown
One man is in police custody after three people were stabbed at Vancouver's Light Up Chinatown! festival. Vancouver police say the attack took place just before 6 p.m. Sunday, near the festival stage at Columbia and Keefer Streets.

Three people injured, suspect in custody following stabbings in Vancouver's Chinatown