While Canada’s national inflation rate cooled off from August to September, B.C. remains the only province in which consumer prices went up month to month, according to Statistics Canada.
Data released Friday (October 23) shows inflation went up 1% in September compared with a year ago. A month prior, the inflation rate rose 1.3%.
But in B.C., inflation was up 1.3% in September compared with 1.2% in August.
British Columbians experienced big price jumps for food and clothing this past year as inflation rose 4.5% and 5%, respectively, in those categories.
But the price of gasoline fell 7.9% across Canada and 15% in B.C. last month.
The core inflation rate, which strips away volatile categories such as food and energy prices, remained unchanged at 2.1%, just one tick above the Bank of Canada’s target rate of 2%.
In a note to investors, TD economist Brian DePratto said the loonie's significant depreciation since last summer has made imports more expensive, which has kept the core inflation rate close to the Bank of Canada's target.
“Although the third quarter of this year is likely to be have seen a robust recovery in economic output, growth is expected to moderate thereafter, and is unlikely to result in significant inflationary pressures,” DePratto wrote.
“As a result, core inflation is expected to remain around the 2% target, with headline inflation eventually following.”
