The fact that inflation fell to 1.6 percent in September came as good news amid the affordability crisis, but there are several price levels that remain elevated.
On Oct. 15, a Statistics Canada report showed that the latest inflation numbers were the consumer price index’s smallest year-over-year increase since February 2021. The Bank of Canada’s inflation target is 2 percent, meaning September’s numbers are good news for those awaiting further interest rate cuts.
Inflation began rising in March 2021, jumping from 2.2 percent to a high of 8.1 percent by June 2022, which led the Bank of Canada to raise interest rates. The key rate rose to 5 percent by July 2023, but the bank lowered it to 4.75 percent in June 2024, 4.5 in July, and 4.25 in September. …