NEWS

Canada's inflation rate drops to 2% in September

10/17/2014 08:44 EDT | Updated 12/17/2014 05:59 EST
Canada's inflation rate came in at two per cent in September, down slightly from August's level but in line with expectations.

Higher prices for shelter and food contributed the most to the rise in the consumer price index, the data agency said Friday, while the transportation index posted the smallest increase, thanks to cheaper gas prices.

Three categories of goods with the biggest price hikes were:

- Meat: 11.5 per cent.

- Cigarettes: 11.4 per cent.

- Telephone services: 7.6 per cent.

Tuition increases were also a factor in the numbers, rising 3.2 per cent in September compared to the same month a year earlier. 

They  increased the most for Ontario residents (up four per cent) and the least for residents of Newfoundland and Labrador (rising by 0.9 per cent).

The overall inflation rate increased in every province, with Ontario and Alberta seeing the biggest gains.

The core inflation rate — which strips out volatile items like food and energy prices and the one the Bank of Canada pays more attention to in setting interest rates — came in at 2.1 per cent on an annualized basis, the same as the previous month's level.

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