Canada’s inflation rate remained unchanged in October after three months of declines, according to Statistics Canada.
The Consumer Price Index rose 6.9 per cent year-over-year in October, similar to what the country saw in September.
Faster price growth for gas and mortgage interest costs put upward pressure on CPI, according to the latest report.
On a monthly basis, gasoline prices increased 9.2 per cent in October following a decrease of 7.4 per cent in September.
“The announcement of future oil production cuts by the Organization of the Petroleum Exporting Countries Plus and a weaker Canadian dollar contributed to higher gasoline prices for Canadian consumers,” said StatCan.
On a year-over-year basis, gasoline prices rose 17.8 per cent in October following a 13.2 per cent increase in September.
Offsetting the upward pressure was slower price growth on a year-over-year basis for natural gas and groceries, particularly prices for fruit, vegetables, and meat.
Prices for food rose 10.1 per cent on a year-over-year basis in October compared with 10.3 per cent in September.
Despite the slowdown in price growth, prices for food purchased from stores continued to increase at a faster rate year over year than overall inflation for the eleventh consecutive month.
Dry or fresh pasta was up nearly 45 per cent, margarine climbed 40 per cent, lettuce was up 30 per cent, rice and rice-based mixes increased nearly 15 per cent, and soup was up 18 per cent.
StatCan said the higher interest rate environment pushed up lending rates in the Mortgage Interest Cost Index. Mortgage interest costs increased 11.4 per cent on a year-over-year basis, the highest increase since February 1991.
Atlantic Canadians paid more for fuel oil and other fuels than Canadians living in other provinces on a year-over-year basis. Prices increased by nearly 68 per cent in Nova Scotia and 51 per cent in New Brunswick.
“Fuel oil is more commonly used for heating homes in Atlantic Canada, and as such, contribute more to price change in these provinces compared with others,” said the report.
On a provincial breakdown, four provinces saw their inflation rate grow slower than the national average, including Québec (6.4 per cent), Ontario (6.5 per cent), Newfoundland and Labrador (6.5 per cent) and Alberta (6.8 per cent).
Prince Edward Island saw the highest increase (8.7 per cent), followed by Manitoba (8.4 per cent), Saskatchewan (8.0 per cent), British Columbia (7.8 per cent), Nova Scotia (7.7 per cent) and New Brunswick (6.9 per cent).
You can view the full report from Statistics Canada by clicking here.
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