GOOD NEWS ON THE HORIZON! Reported yesterday, September's inflation rate in Canada SLOWED to 3.8% (from 4.0% in August) – this figure, was lower what economists were expecting, driven by broad-base decline in prices overall. Lower prices were seen through a variety of goods and services, including travel, durable goods and some grocery items. Energy prices also declined slightly relative to August, but still remains high (+7.5% year-over-year).
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Source: StatsCanada
On a monthly basis, the cost of living has declined in September by 0.1% – although very marginal, it is the very first time that's happened since November last year.
This welcomed report comes at a critical time, as the Bank of Canada will announce it's rate decision next week on October 25, 2023. This is probably the BEST NEWS the BoC has received in months, and will likely take confidence with a high probability of holding rates flat at 5%.
There is further evidence consumers are also cutting back, from things like recreation to restaurants, largely due to the outrageous rate hikes over the last few years.
A few interesting graphs below:
Key categories saw a price decline since August. The largest buckets of Food, Furnishings, Clothing, just to name a few of the biggest movers.
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Alberta came in forth place as having the most decline in prices across Canada, while some other provinces actually saw an increase in month over month inflation rate.
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