OTTAWA – Statistics Canada says the annual pace of inflation rose to 3.1 per cent in September as war in the Middle East continued to drive up gas prices.
The agency says the acceleration was led by a 27.8 per cent spike in gasoline prices last month compared with a year earlier, despite the switch to the less expensive winter gas blend.
StatCan says excluding gasoline, consumer prices increased 2.2 per cent year-over-year in September.
The agency says fuel oil and other fuels surged 57.8 per cent in September, hitting consumers hard in Atlantic Canada where many homes are heated with oil.
StatCan says grocery prices increased 1.7 per cent last month, the smallest yearly increase since May 2024.
Despite the year-over-year slowdown, the agency says prices for groceries have increased 33 per cent since September 2020.
This report by The Canadian Press was first published Oct. 19, 2026.