The agency said Tuesday its consumer price index for September was up 1.6% from a year ago compared with a year-over-year increase of 2% in August.
It was the slowest annual pace for inflation since February 2021 when it was 1.1%.
Gasoline prices in September fell 10.7% compared with a year earlier. Excluding gasoline, the annual pace of inflation was 2.2% in September.
Meanwhile, rent prices increased at a slower pace in the month but remained elevated as they rose 8.2% compared with a year ago following a year-over-year gain of 8.9% in August.
Grocery prices increased 2.4%, rising faster than overall inflation
Statistics Canada said prices for food purchased from stores rose faster than overall inflation as they increased 2.4% in September, the same rate as in August. Prices for fresh or frozen beef gained 9.2%, while edible fats and oils rose 7.8% and eggs increased 5%.
Prices for food purchased from restaurants rose 3.5% compared with 3.4% in August.
The inflation report is the last major piece of economic data before the Bank of Canada’s interest rate decision on Oct. 23.
The central bank, which has a target of 2% for inflation, has cut its key interest rate three times so far this year to bring it to 4.25%.
