Consumer Price Index, September 2024
October 28, 2024
The Consumer Price Index (CPI) rose 1.6% on a year-over-year basis in September, down from a 2.0% gain in August. This was the smallest yearly increase since February 2021 (+1.1%). The main contributor to headline deceleration was lower year-over-year prices for gasoline in September (-10.7%) compared with August (-5.1%). The all-items CPI excluding gasoline rose 2.2% in September, matching the increase in August for this measure.
Although the rate at which prices are increasing has slowed, price levels remain elevated. Compared with September 2021, the CPI rose 12.7% in September. Canadians continue to feel the impact of higher price levels for day-to-day basics such as rent (+21.0%) and food purchased from stores (+20.7%), which increased during that same 3-year period.
On a monthly basis, the CPI fell 0.4% in September, after a 0.2% decline in August. Both the monthly and yearly movement in September were led by lower prices for gasoline. On a seasonally adjusted monthly basis, the CPI was unchanged at 0.0% in September.
Chart 1
12-month change in the Consumer Price Index (CPI) and CPI excluding gasoline
Chart 2
Larger decline in transportation prices contributes the most to the all-items slowdown
Gasoline prices fall
Year over year, gasoline prices fell to a greater extent in September (-10.7%) compared with August (-5.1%), putting downward pressure on the all-items CPI.
On a monthly basis, gasoline prices fell 7.1% in September following a 2.6% decline in August. The September decline was driven by lower crude oil prices amid increasing concerns over weaker economic growth, as well as lower costs associated with switching to winter blends.
Similarly, prices for fuel oil and other fuels fell 22.0% year over year in September, after decreasing 10.2% in August.
Chart 3
Prices for gasoline decline on a monthly basis in four of the last five months
Prices for rent increase at a slower pace
Prices for rent increased at a slower pace in September, rising 8.2% year over year, following an 8.9% gain in August. Rent price growth slowed the most in Newfoundland and Labrador (+5.1%), New Brunswick (+10.1%) and British Columbia (+7.3%).
Chart 4
Rent price growth slows but remains elevated
Consumers pay less for air transportation
Consumers paid less on a year-over-year basis for air transportation (-4.4%) in September. Month over month, prices for air transportation fell 14.3%. This price movement is seasonally typical, as the month of September coincides with the end of the summer travel period.
Canadians continue to face higher prices at the grocery store
Prices for food purchased from stores rose 2.4% in September, the same growth rate as in August. This is the second consecutive month that grocery prices increased at a faster pace than headline inflation. While prices declined on a year-over-year basis for some food items, such as seafood and other marine products (-4.9%), nuts and seeds (-0.9%), and fish (-0.3%), others continued to increase and remained elevated, such as fresh or frozen beef (+9.2%), edible fats and oils (+7.8%) and eggs (+5.0%).
Additionally, prices for food purchased from restaurants rose at a slightly faster pace in September (+3.5%) compared with August (+3.4%).
Regional highlights
Year over year, prices rose at a slower pace in September compared with August in all provinces.
Tuition fees increase at a slower pace
Tuition fees, priced annually in September, rose at a slower pace in 2024 (+1.8%) compared with 2023 (+2.5%). Tuition fees increased 2.3% in Alberta, down from a 4.8% gain in September 2023, following a cap on domestic tuition fee increases.
Chart 5
The Consumer Price Index rises at a slower pace in all provinces
