Canada’s annual inflation rate rose to 2.4% in September as grocery prices continue to rise

Statistics Canada said Tuesday that Canada’s annual inflation rate rose to 2.4 per cent in September due to rising grocery prices and a slow decline in gas and travel tour prices.

Economists were expecting the headline number to reach 2.2 percent. Excluding gas, the annual inflation rate rose to 2.6 percent, the data agency said.

Shoppers paid four percent more at the grocery store in September compared with the same period last year, mainly due to pricier fresh vegetables and sugar and confectionery.

Statistics Canada said grocery inflation has generally trended upward since April. Fresh and frozen beef and coffee have contributed to the higher rates, partly because they are both in short supply.

Gas prices fell at a slower pace in September compared to the same period last year – 4.1 percent year-on-year.

Last year, crude oil prices fell amid concerns over weak economic growth in the US and China; Gasoline prices rose last month due to refinery disruptions in the U.S. and Canada, according to Statistics Canada.

Travel tourism costs also declined at a slow year-on-year pace in September.

While prices typically fall on a monthly basis during this time of year, prices have increased by 4.6 percent since August, as hotels have become more expensive due to major events in the US and Europe.