Atlantic Canadian households faced inflation above the national rate in September as fuel oil prices surged, ahead of the Bank of Canada’s next rate decision.
Statistics Canada reported annual inflation of 5.7% in Prince Edward Island, 5.6% in Nova Scotia and 5.0% in New Brunswick. The national rate was 3.1%, while Ontario recorded 2.5%. Fuel oil and other fuels cost 57.8% more than a year earlier. Statistics Canada said the increase had a greater impact in Atlantic Canada, where fuel oil is used more widely.
The pressure extended across energy prices. The energy index rose 19.0% from a year earlier, up from 15.4% in August. Gasoline’s annual increase widened to 27.8% from 22.8%. Statistics Canada linked higher gasoline and fuel oil prices to rising crude costs amid uncertainty over wars in the Middle East.
Nationwide inflation edged up from 3.0% in August, as EconoTimes reported in its earlier coverage of the September figures. Excluding gasoline, however, the annual rate slowed to 2.2% from 2.4%. All three of the Bank of Canada’s core measures also eased: CPI-trim fell to 1.8% from 1.9%, CPI-median to 1.9% from 2.0%, and CPI-common to 2.4% from 2.6%.
Food prices offered another contrast. Grocery inflation slowed to 1.7% from 2.8% in August, though groceries still cost 33.0% more than in September 2020. Slower annual increases therefore do not erase the price gains households have already faced.
The national inflation rate sits just above the Bank of Canada’s 1% to 3% target range. The bank held its policy rate at 2.25% on Sept. 2 and warned that sustained high oil prices raise the risk of broader price increases. Its next rate decision and Monetary Policy Report are scheduled for Oct. 28 at 9:45 a.m. ET. Statistics Canada is due to release October inflation figures on Nov. 16.
