Annual inflation falls to 1.6% in September, smallest yearly increase since 2021

OTTAWA — Statistics Canada says the annual inflation rate continued to slow in September as drivers paid lower prices for gasoline compared with last year.

The agency says its consumer price index for September was up 1.6 per cent from a year ago compared with a year-over-year increase of two per cent in August.

It was the slowest annual pace for inflation since February 2021.

Gasoline prices in September fell 10.7 per cent compared with a year earlier. Excluding gasoline, the annual pace of inflation was 2.2 per cent in September.

The inflation report is the last major piece of economic data before the Bank of Canada’s interest rate decision next week.

The central bank, which has a target of two per cent for inflation, has cut its key interest rate three times so far this year to bring it to 4.25 per cent.