Released on October 23, 2026
In September, Canada’s consumer price index, a core inflation metric, rose to 3.1%, up 0.1 points from August, driven by higher fuel prices. On September 2, during an address on the Bank of Canada’s rate decision, Tiff Macklem, Governor of the Bank of Canada, noted that inflation in Canada has hovered around 3% in recent months, mainly because of persistently high gasoline prices caused by the conflict in Iran, which has kept global oil prices high and pushed up the price of refined products like gasoline and diesel.
Economists are closely monitoring inflation to gauge whether the Bank of Canada will raise rates at its next interest rate announcement scheduled for October 29, 2026. The persistence of higher inflation may lead the Bank of Canada to raise its overnight rate, currently set at 2.25%, leading to higher rates on mortgages, business loans, and other forms of debt.
Last Updated: October 23, 2026
About Source(s)
Source: The Bank of Canada (BOC), is Canada's central bank.
Notes: The Consumer Price Index (CPI) is an indicator of changes in consumer prices experienced by Canadians. It is obtained by comparing, over time, the cost of a fixed basket of goods and services purchased by consumers.
