Consumer prices in Canada growing at a slower pace in September

The consumer prices in Canada are growing at a slower pace than expected in September 2016. The gasoline is cheaper, while food prices recorded its weakest growth since 2000. The inflation in September was 1.3% yoy, as expectations were for growth of 1.5%.

The core inflation, which excludes some volatile components and which is monitored by the central bank, remained stable at 1.8% as expected. The food prices rose by 0.1% yoy, which is the weakest rise since February 2000

At the beginning of the year, the decline in the Canadian dollar led to higher prices of vegetables, but in September they dropped by 2%, which was the first drop in price on an annual basis from January 2013.

Gasoline prices decreased by 3.2% yoy, but this is quite a slight decline from 11.5% decrease recorded in August. Excluding gasoline, the Consumer Price Index grows by 1.5%.

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