Ontario Construction News staff writer
Canada’s inflation rate rose to 3.1 per cent year over year in September, up from 3.0 per cent in August, driven largely by higher gasoline prices, according to Statistics Canada.
Gasoline prices increased 27.8 per cent year over year in September, compared with a 22.8 per cent increase in August. Excluding gasoline, the inflation rate was 2.2 per cent, down from 2.4 per cent the previous month.
Energy prices rose 19.0 per cent year over year in September, accelerating from a 15.4 per cent increase in August. Higher crude oil prices amid uncertainty surrounding conflicts in the Middle East contributed to increases in gasoline and fuel oil prices.
Fuel oil and other fuel prices rose 57.8 per cent year over year in September, up from 43.7 per cent in August. The increase had a greater impact in Atlantic Canada, where fuel oil is more widely used.
Despite the acceleration in overall inflation, grocery price growth slowed. Prices for food purchased from stores increased 1.7 per cent year over year in September, down from 2.8 per cent in August. It was the smallest annual increase since May 2024.
However, grocery prices have increased 33.0 per cent since September 2020.
Shelter prices rose 1.8 per cent year over year in September, compared with a 1.5 per cent increase in August. Homeowners’ home and mortgage insurance prices increased 4.9 per cent, while homeowners’ maintenance and repair costs rose 1.2 per cent.
Rent prices increased 2.8 per cent year over year, unchanged from August.
Overall, the inflation rate increased 0.1 per cent month over month in September. On a seasonally adjusted basis, prices rose 0.4 per cent compared with August.
At the provincial level, prices rose at a faster pace in five provinces in September, primarily because of higher gasoline and fuel oil prices.
Excluding energy, inflation was 2.1 per cent nationally. It was higher in Nova Scotia at 3.3 per cent, Prince Edward Island and New Brunswick at 2.6 per cent each, and Newfoundland and Labrador at 2.4 per cent. Rent prices increased at the fastest pace in Atlantic Canada.
Statistics Canada also reported that tuition fees rose 2.4 per cent nationally in 2026, compared with a 1.7 per cent increase in 2025. In Ontario, tuition fees increased 2.1 per cent, the largest annual increase since 2018, following the province’s decision to end its tuition freeze.
