Mortgage Blog
Helping You Get the Right Mortgage
Canada’s inflation rate quickens to 2.4% ahead of BoC rate decision
October 21, 2025 | Posted by: Jatinderbir Singh Bajwa
Canada’s inflation rate accelerated by more than expected in September, but not enough to deter the Bank of Canada from cutting interest rates next week, according to several analysts.
The Consumer Price Index rose 2.4 per cent in September on an annual basis, up from August’s 1.9-per-cent pace, Statistics Canada said Tuesday. Financial analysts were expecting an inflation rate of 2.2 per cent.
The CPI results were heavily influenced by fluctuations in fuel costs. Year over year, gas prices fell by 4.1 per cent in September, but that was less than a 12.7-per-cent decline in August, putting upward pressure on headline inflation.
Excluding gas, consumer prices have risen by 2.6 per cent over the past year, up from 2.4 per cent in August
Statistics Canada said on Tuesday that the consumer price index (CPI) rose thanks to a bump in food prices and slower price declines at the pump. September’s reading marks a higher increase than economists had expected, with analysts on average having predicted a 2.2% climb.
Rent costs were up 4.8% last month across Canada, while mortgage interest costs ticked upwards by 3.6%. Property taxes and other special charges rose by 6%, while homeowners’ replacement costs slipped by 1.4%.
