Canada’s inflation rate fell to 3.8% in September: Statistics Canada

Canada’s annual inflation rate fell to 3.8 per cent in September as prices for a range of goods and services rise more slowly, including durable goods and grocery prices.

On Tuesday Statistics Canada released its latest consumer price index which showed inflation continued to fall after rising up to four per cent in August.

The federal agency says grocery prices were up 5.8 per cent in September on an annual basis compared with a year-over-year increase of 6.9 per cent in August.

The report shows the main upwards pressures on inflation last month were mortgage interest costs, rent, food purchased from restaurants, gasoline and electricity.

The release of the latest data comes one week before the Bank of Canada is expected to make the next interest rate announcement and updated forecast for inflation.

The central bank’s key interest rate is currently sitting at five per cent, the highest it has been since 2001.

WATCH MORE: Statistics Canada says country’s inflation rate rose 4% in August