The inflation rate moved closer to the Bank of Canada’s target in October, at 3.1%, after increasing 3.8% in September.
The slowdown in price increases is attributable to the drop in the price of gasoline. Excluding gasoline, the Consumer Price Index is up 3.6%, according to Statistics Canada.
In Quebec, prices remained stable in October, but annual inflation remains the highest in Canada, at 4.2%.
The cost of mortgage interest, store-bought food and rent continued to be the largest contributors to the year-over-year increase in the CPI.
At the grocery store, price increases also slowed to 5.4%, after an increase of 5.8% in September. Fresh vegetables show the highest price increase, at 5%.
Rent prices continue to increase rapidly, at 8.2%. Quebec is among the provinces where rent increases were the highest, at 9.1%.
On a monthly basis, the CPI increased by 0.1% in October, after decreasing by 0.1% in September.
The measures of core inflation that the Bank of Canada monitors are also pointing downward, albeit very slightly, which should not allay its concerns about price developments.