Inflation rises to 3.1% in September as gas prices push higher
Statistics Canada says annual inflation climbed to 3.1% in September, led by gasoline - a week before the Bank of Canada's October 28 decision.
Canada’s Consumer Price Index rose 3.1 per cent year over year in September 2026, compared with 3.0 per cent in August, Statistics Canada reported on October 19. Gasoline was a major driver: prices were up 27.8 per cent from a year earlier and 6.1 per cent from August.
What changed in the price basket
Grocery price growth moved in the opposite direction. Prices for food purchased from stores rose 1.7 per cent year over year in September, down from 2.8 per cent in August. Shelter prices rose 1.8 per cent year over year. The higher headline rate therefore should not be read as a broad acceleration in every category.
| Measure | September 2026 |
|---|---|
| All-items CPI, year over year | 3.1% |
| August all-items CPI, year over year | 3.0% |
| Gasoline, year over year | 27.8% |
| Groceries, year over year | 1.7% |
What comes next
The Bank of Canada’s next scheduled policy-rate announcement is October 28. Its target overnight rate was 2.25 per cent after the September 2 decision. The bank will weigh this CPI report alongside employment and other economic data. See our rate and mortgage coverage and more in Business & Money.
Sources: Statistics Canada’s September CPI report, CPI component table, and the Bank of Canada’s September rate announcement.
Correction, October 25, 2026: An earlier version described August inflation as below 3 per cent and suggested grocery inflation was accelerating. Statistics Canada reported August all-items CPI at 3.0 per cent and September grocery inflation at 1.7 per cent, down from 2.8 per cent in August. We removed an unsupported market-rate prediction.
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