Canada's annual inflation falls to 3.8% in September, grocery prices rise more slowly

Statistics Canada says the annual inflation rate slowed to 3.8% in September as prices year-over-year rose more slowly across the economy.

The latest data comes after the annual rate flared up during the summer, reaching 4% in August.

The report shows consumers paid significantly less for airfare compared with a year ago, while prices for durable goods rose more slowly.

Statistics Canada says grocery prices continue to rise rapidly, but the pace of growth fell to 5.8% in September, down from 6.9% in August.

Meanwhile, higher gasoline prices put upward pressure on inflation, as prices were 7.5% higher than they were in September 2022.

The latest data comes a week ahead of the Bank of Canada's next interest rate announcement and updated forecast for inflation.