Grocery inflation drops to 1.7%, lowest level since May 2024

Grocery prices increased 1.7% year-over-year in September, the smallest yearly increase since May 2024.

September marks the second consecutive month where grocery price growth increased at a slower pace than the all-items Consumer Price Index, Statistics Canada said Monday (Oct. 19).

The CPI rose to 3.1% in September, following a 3% increase in August. 

The acceleration was led by higher prices for gasoline in September (up 27.8%). Excluding gasoline, the CPI rose 2.2%. 

Moderating the acceleration in the all-items CPI in September were smaller year-over-year price increases for travel tours and groceries compared with August.

Driving the year-over-year slowdown in grocery prices were declines in prices for fresh vegetables (-2.9%) and sugar and confectionery (-2.7%). Prices for other food preparations (1.8%) and fresh or frozen beef (8.7%) rose at a slower pace in September.

Despite the slowdown, grocery prices have increased 33% since September 2020.

Energy prices accelerated last month, rising 19% year-over-year. 

Crude oil prices increased in September, reaching their highest level since May.

Year over year, prices for gasoline rose at a faster pace in September (27.8%) compared with August (22.8%).