Gasoline and natural gas prices fell
allowing inflation to remain stable in Canada
The Composite Consumer Price Index
(CPI) stabilized at 1.9% in September
but the core consumer price index most concerned
by the Bank of Canada rose slightly by 0.1 percentage point to 2.1%.
Statistics Canada said
the combined CPI for September was 1.9%
the same as the August figure
and below the 2.1% forecast by economic analysts
According to the Bureau of Statistics
gasoline prices fell by 10% in September
and natural gas prices fell by 10.2%.
These two links are the main reason for the stable inflation
If the energy projects were deducted
the inflation rate in September was 2.4%.
The Bureau of Statistics also said that
that except for the drop in gasoline and natural gas prices
the Internet, tuition fees and telephone charges all recorded declines
however, mortgage interest
auto insurance and automobile prices increased.
As for the core consumer price index
that the Central Bank of Canada is most concerned about
the average of the three core indices in September was 2.1%
up 0.1 percentage points from 2% in August.
Even if the core consumer price index rises
and is above the central target of the 2% target set by the central bank
the market believes it will not affect the outcome
of the central bank’s meeting on interest rates at the end of this month.