Canada's inflation rate rises to 3.1% in September as gasoline prices climb

OTTAWA — Canada's annual inflation rate rose to 3.1 per cent in September, up from 3.0 per cent in August, as higher gasoline prices pushed up the cost of living, according to Statistics Canada.

Figures released October 19 show gasoline prices increased 27.8 per cent compared with September 2025, accelerating from a 22.8 per cent annual increase in August. Gasoline prices also rose 6.1 per cent between August and September.

The increase in fuel costs was the main reason overall inflation accelerated. Excluding gasoline, consumer prices rose 2.2 per cent year over year, down from 2.4 per cent in August.

Transportation costs increased 8.4 per cent over the previous year, while shelter costs rose 1.8 per cent. Food prices increased 2.2 per cent, with grocery prices rising 1.7 per cent.

British Columbia's annual inflation rate was 3.0 per cent in September, slightly below the national average. Prices in B.C. declined 0.2 per cent between August and September, although they remained higher than a year earlier.

Nationally, the Consumer Price Index increased 0.1 per cent on an unadjusted monthly basis. After seasonal adjustment, the monthly increase was 0.4 per cent.

The Consumer Price Index measures changes in the prices Canadians pay for a representative basket of goods and services, including food, housing, transportation and household expenses. The next monthly report will provide October's figures.

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