Canada’s annual inflation rate rose to 2.4 per cent in September, as grocery prices rose and gas and travel tour prices fell at a slower pace, Statistics Canada said Tuesday.
Economists were expecting the headline number to reach 2.2 per cent. When excluding gas, the annual inflation rate increased to 2.6 per cent, the data agency said.
Shoppers paid four per cent more at the grocery store in September compared to the same period last year, largely driven by pricier fresh vegetables and sugar and confectionery.
Grocery inflation has generally trended upward since April, Statistics Canada said. Fresh and frozen beef and coffee have contributed to the higher rate, partly because they’re both in low supply.
Gas prices fell at a slower pace in September — 4.1 per cent on a yearly basis — compared to the same period last year.
Last year, prices fell due to a drop in crude oil prices that emerged from concerns over weaker economic growth in the U.S. and China; last month, refinery disruptions in the U.S. and Canada pushed petrol prices higher, according to Statistics Canada.
The cost of travel tours also fell at a slower pace year-over-year in September.
While prices usually decline on a monthly basis during this time of the year, prices rose 4.6 per cent from August, as big events in the U.S. and Europe made hotels more expensive.