Canada’s inflation rate rises 1.3% in September

Transportation and housing sectors contributed most to higher prices nationwide

OTTAWA— Statistics Canada says its consumer price index was up 1.3 per cent in September compared with a year ago.

That indicates slightly higher inflation compared with August when the index was up 1.1 per cent.

“Headline inflation will continue to trend up in Canada alongside the price of oil, but underlying price pressures remain soft and indeed appear to be cooling as the past depreciation in the loonie falls out of the index,” TD Bank senior economist James Marple wrote in a report.

“The Canadian dollar was slightly higher in September relative to its value a year ago. Even as a more dovish sounding Bank of Canada may put some downward pressure on the loonie going forward, this will be offset in part by rising energy prices, leaving most of the adjustment in the exchange in the rear-view mirror.”

Statistics Canada said prices were up in all eight major components that it tracks, especially the shelter and transportation sectors.

The transportation index gained 2.3 per cent compared with a year ago, while the shelter category was up 1.7 per cent.

Food prices were up 0.1per cent, the sector’s smallest year-over-year increase since February 2000. Food from stores posted their first yearover-year decline since March 2008 as they fell 0.9 per cent.

The Bank of Canada’s core index, which excludes some of the most volatile components, increased 1.8 per cent compared with a year ago.

The core inflation was in line with analyst estimates but overall inflation was below the estimated 1.5 per cent, according to Thomson Reuters.

Prices were up more on a yearover-year basis in September than in August in every province except Alberta and B.C., where they posted smaller increases.