Inflation held steady in October, StatCan reports

The annual pace of inflation held steady in October as the consumer price index rose 1.9% compared with a year ago, matching its moves in August and September, Statistics Canada said Wednesday.

The result was also in line with the expectations of economists, according to financial markets data firm Refinitiv.

The overall rise in prices came as food prices rose 3.7% compared with a year ago. Fresh fruit prices rose 7.9% and fresh vegetable prices climbed 7.5%.

Compared with a year ago, the price of gasoline was down 6.7% in October compared with a 10.0% decline in September. Natural gas prices rose 3.3% compared with a year ago following a 5.8% increase in September.

Statistics Canada said although global demand for oil remained low in October, there were slight price increases on a monthly basis due to temporary supply disruptions in the Middle East and a drop in crude oil inventories in the United States.

Excluding gasoline, the annual pace of inflation was 2.3% in October, down from 2.4% in September.

The average of Canada’s three measures for core inflation, which are considered better gauges of underlying price pressures, was 2.07% compared with a revised figure of 2.03% in September.

The core readings are closely monitored by the Bank of Canada, which adjusts its key interest rate target to manage inflation.

Regionally, prices were up 2.3% compared with a year ago in Quebec, while Manitoba and B.C. both saw increases of 2.2%. The annual pace of inflation was 1.7% in Ontario.

The Canadian Press

The Canadian Press is a national news agency headquartered in Toronto and founded in 1917.