Higher gas prices drove inflation up to 3.1% in September: StatCan

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OTTAWA - 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, Statistics Canada said Monday.

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OTTAWA – 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, Statistics Canada said Monday.

The agency said 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.

Excluding gasoline, consumer prices increased 2.2 per cent year-over-year in September.

A person pumps fuel in Toronto after gasoline prices rose overnight on Wednesday, September 12, 2012. THE CANADIAN PRESS/Michelle Siu
A person pumps fuel in Toronto after gasoline prices rose overnight on Wednesday, September 12, 2012. THE CANADIAN PRESS/Michelle Siu

The agency said 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.

Meanwhile, grocery prices increased 1.7 per cent last month, the smallest yearly increase since May 2024, according to Statistics Canada.

Driving the slowdown was a 2.9 per cent drop in prices for fresh vegetables, while sugar and confectionary items fell 2.7 per cent.

Beef prices, meanwhile, rose at a slower pace in September, up 8.7 per cent compared with an 11 per cent increase in August.

Despite the year-over-year slowdown, the agency said prices for groceries have increased 33 per cent since September 2020.

Statistics Canada said shelter prices rose 1.8 per cent in September, up from 1.5 per cent in August.

In addition to the spike in fuel oil, the agency said a 4.9 per cent increase in mortgage insurance and 1.2 per cent increase in home maintenance and repair costs lead the acceleration.

This report by The Canadian Press was first published Oct. 19, 2026.

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