Canada’s inflation falls to 6.9% in September as grocery prices continue to rise sharply – The Globe and Mail
Inflation in Canada’s major industrialized provinces continues to fall slowly, as food prices in Canada continue to rise. According to Statistics Canada, inflation adjusted to remove the impact of food and energy prices, inflation in September was 6.9 per cent, down from 6.7 per cent in August in terms of the consumer price index, which measures the cost of the majority of items in the country’s economy.
This was the lowest rate of inflation since August and September 2010, and was the result of a drop in prices for food and energy products. Food prices, which were up 8.7 per cent in September, declined 0.1 per cent in October and 0.5 per cent in the past 12 months.
The lower number reflected lower prices for the majority of basic products such as shelter, furniture and clothing that constitute the core of Canadians’ spending behaviour. Energy prices, which were up 0.6 per cent in September, were also lower in October and the past 12 months.
Over the past year, the price of food has fallen 0.4 per cent. The price of shelter, clothing and the majority of basic products combined has fallen by 1.3 per cent in the past year.
The price of electricity went up 0.4 per cent in September and is set to advance further by year-end. The national average price for residential customers went up 0.1 per cent, while the average for all other types of energy went down 0.1 per cent due to a seasonal adjustment.
The number for food prices continued to decline in September. The decline in the price of food and energy was the result of a fall in the cost of fresh and processed foods and a rise in the price of non-food products such as beverages, gasoline and clothing.
Food inflation is the sum of changes in the prices of staples such as meat, grains and vegetables. The changes affect the price of the majority of food items on consumers’ shopping lists.
Food prices are primarily driven by changes in the cost of agricultural and meat products rather than other types of food. Increases in the prices of agricultural products such as beef and milk have contributed to a rise in the cost of food in recent months. The increase in the price of milk, which rose by 2.8 per cent in August, was due to higher prices for cheese