Canada’s annual inflation rate edged higher last month, rising to 2.4% in September, according to new data from Statistics Canada. The increase marks a notable jump from August’s 1.9%, as consumers continued to face higher costs for everyday essentials like food and housing.
Food prices climbed 4% year-over-year, led by steep increases in fresh vegetables, beef, coffee, sugar, and confectionary products. Statistics Canada attributed the rise largely to tighter supply chains and global trade disruptions. Shelter costs also pushed the overall index higher, with national rent prices up 4.8%, compared to 4.5% in August.
“Inflation inched higher in September, and the culprits fuelling the uptick will surprise no one,” said Shannon Terrell, personal finance expert at NerdWallet Canada. “Food and shelter continue to outrun headline inflation and strain Canadian budgets.”
The latest figures come as tariff policies from major trading partners, including the United States and China, continue to raise costs for Canadian businesses — many of which are passing those increases on to consumers.
Prime Minister Mark Carney is still negotiating a trade deal with the U.S. aimed at softening the impact of President Donald Trump’s tariffs, but households are already feeling the squeeze.
Opposition leaders seized on the data, saying the government isn’t doing enough to curb rising living costs. “It’s been seven months since Carney took office and grocery prices have only gone up,” the Conservative Party said in a statement. “The latest CPI shows grocery prices rising 4% year-over-year — double the Bank of Canada’s target.”
Falling gasoline prices helped temper some of the overall increase, but core inflation, which excludes volatile energy costs, held at 2.8% — still well above the central bank’s 2% target.
Economists remain divided on whether the Bank of Canada will continue cutting interest rates when it meets on October 29. “Inflation remains above target, but that didn’t stop a rate cut in September,” said Abbey Xu, economist at RBC. “We still expect one more reduction next week.”
While another cut could ease borrowing costs, experts warn it won’t bring immediate relief. “Even modest rate reductions take time to filter into monthly budgets,” said Terrell. “With grocery and housing costs still high, Canadians should focus on smart spending — comparing prices, cutting subscriptions, and paying down high-interest debt.”