September sees a 1.6% annual inflation rate, the lowest since 2021
The central bank has already cut its key interest rate three times this year, bringing it to 4.25%, in an effort to curb inflation and reach its target of 2%.
Statistics Canada reported that the annual inflation rate continued to slow in September, with a significant drop in gasoline prices compared to the previous year.
The consumer price index (CPI) for September increased by just 1.6% year-over-year, down from 2% in August. This marks the slowest annual inflation rate since February 2021.
Gasoline prices dropped by 10.7% from September 2023, contributing to the overall slowdown in inflation.
When excluding gasoline, the annual inflation rate was slightly higher at 2.2% in September.
This inflation report is the last major economic data point before the Bank of Canada’s upcoming interest rate decision next week.
The central bank has already cut its key interest rate three times this year, bringing it to 4.25%, in an effort to curb inflation and reach its target of 2%.
