Canada’s inflation rate declined to an annualized 3.1% in October from 3.8% in September of this year.
Statistics Canada attributed the year-over-year decline in the Consumer Price Index (CPI) to lower gasoline prices, which fell 7.8% during October.
Excluding gasoline costs, the CPI in October came in at 3.6% versus 3.7% in September.
The decline in gas prices was partially offset by a 4.6% increase in services, with higher prices for travel tours, rent and property taxes.
The federal statistics agency said that the biggest contributors to year-over-year inflation continue to be mortgage interest, rent, and food costs.
Although grocery prices remain elevated, they continue to decline, with a 5.4% increase in October compared to a 5.8% year-over-year gain observed in September.
Property taxes, which are set annually each October, rose 4.9% on a year-over-year basis, compared with a 3.6% increase in October 2022. The property tax increase this October was the largest since 1992.
Inflation rose in all provinces during October but at a slower pace than September.
On a monthly basis, inflation rose 0.1% in October after a 0.1% decline in September. The monthly increase was largely due to the rise in property taxes, said Statistics Canada.
