Canada’s inflation rate slowed to 2.2 percent in October, down from 2.4 percent in September, driven largely by sharply lower gasoline prices, Statistics Canada reported Monday. The deceleration offers some relief for employers navigating wage negotiations and cost-of-living pressures, though grocery prices remain elevated above the overall inflation rate.
The Consumer Price Index rose 2.2 percent on a year-over-year basis in October, with gasoline prices falling 9.4 percent compared with the same month last year. Excluding gasoline, the CPI rose 2.6 percent, matching September’s increase.
Grocery prices slow but remain above headline inflation
Food purchased from stores rose 3.4 percent year-over-year in October, down from a 4.0 percent increase in September. Grocery prices have exceeded overall inflation for nine consecutive months, a trend that continues to strain household budgets despite the recent deceleration.
Prices for processed foods rose 3.2 percent, while fresh vegetables fell 1.4 percent. Fresh or frozen chicken prices jumped 6.2 percent, up from 1.5 percent in September. On a month-over-month basis, grocery prices fell 0.6 percent in October, the largest monthly decline since September 2020.
Cellular service costs surge after two-year decline
Cellular service prices rose 7.7 percent year-over-year in October, marking the first increase since April 2023 after an extended period of declining costs. The index jumped 8.2 percent month-over-month due to price increases from several wireless service providers.
The shift reverses a trend that had provided cost relief for employers managing corporate phone plans and employees with personal devices. Prices for multipurpose digital devices, including smartphones and tablets, continued to fall 7.7 percent year-over-year, declining for the 26th consecutive month.
Insurance costs climb across home and auto coverage
Homeowners’ home and mortgage insurance rose 6.8 percent year-over-year in October, while passenger vehicle insurance premiums increased 7.3 percent. Alberta saw the steepest increases, with home insurance up 13.7 percent and auto insurance premiums rising 17.8 percent.
Since October 2020, homeowners’ insurance has climbed 38.9 percent nationally, while auto insurance premiums have risen 18.9 percent. The increases add to benefits costs for employers and financial pressures on employees.
Property taxes rise moderately across most provinces
Property taxes and other special charges rose 5.6 percent year-over-year, down slightly from a 6.0 percent increase in 2024. Manitoba recorded the largest increase at 19.5 percent, driven partly by higher sewer charges and increased garbage fees in Winnipeg.
Newfoundland and Labrador saw the biggest deceleration, with property taxes rising just 2.6 percent in 2025 after a 9.7 percent increase in 2024. Statistics Canada noted that property taxes are determined by assessed home values, municipal and provincial tax rates, service charges, and homeowner tax rebates.
Regional variations and energy costs
Seven provinces saw inflation slow on a yearly basis in October compared with September. Ontario natural gas prices fell 17.3 percent year-over-year, dropping 22.4 percent month-over-month amid rate adjustments and lower commodity prices.
The statistical agency said no special adjustments to the Consumer Price Index will be required for tariffs, as their effect is embedded in final prices collected. Statistics Canada will continue to monitor developments on tariffs and their impact on consumer price inflation.
