The Financial Post reports in its Thursday edition that Statistics Canada's consumer price index increased 6.9 per cent in September from a year earlier, compared with 7 per cent the previous month, suggesting inflationary pressures are receding. The Post's Kevin Carmichael writes that year-over-year increases in the CPI have now dropped for three consecutive months.
Lower gasoline prices explain most of the drop; they only rose 13.2 per cent from September, 2021, compared with an annual increase of 22.1 per cent in August.
Food costs surged 11.1 per cent, the most since August, 1981, led by higher prices for baked goods, fresh vegetables and meat, Statistics Canada said. The agency attributed the increase to poor weather, higher fertilizer and natural gas prices, and "geopolitical instability" resulting from Russia's unprovoked invasion of Ukraine. Evidence that inflationary pressures are easing is positive. However, prices are still rising faster than wages, so households will continue to feel squeezed, and politicians and policymakers will continue to feel pressure to do something about it. The fact that inflation continues to spread across the economy probably offsets the slowing of the headline rate.
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