Canada's food price increases "slowed" in September but headline inflation remains high, the latest report from Statistics Canada said.
According to the Consumer Price Index (CPI), grocery inflation was at 5.8 per cent year-over-year, a small drop from August's 6.9 per cent marker.
The "deceleration" was led by meat, dairy products, coffee and tea, the report published Oct. 17 noted.
Overall headline inflation was 3.8 per cent in September, a slower growth than the four per cent gain in August.
"September’s inflation number is solid evidence that the monster August print was an outlier, not the start of a new trend," Jules Boudreau, Senior Economist at Mackenzie Investments, told CTVNews.ca in an interview Tuesday. "We should expect inflation to trend around three per cent over the next few months, not the four per cent trend suggested by August’s print."
Gasoline prices rose faster in September compared to August, but excluding that commodity, StatCan said overall inflation would have dropped by 0.1 per cent.
Groceries continue to be expensive with some products rising in price in September.
FOODS THAT COST MORE
Fresh vegetables had the highest year-over-year inflation rate of any food, according to StatCan.
The products, which include carrots, onions, cucumbers and others, had an 18.4 per cent year-over-year inflation rate in September. This is up 1.9 per cent from August.
Edible oils and fats continued to be costly for Canadians, with a 14.8 per cent inflation rate in September. Costs rose 0.4 per cent from August to September.
Fruit juice rose 2.2 per cent month-to-month landing at an inflation rate of 12.6 per cent in September, year-over-year.
Ice-cream-related products saw one of the largest price increases from August to September. The item rose 4.9 per cent month-to-month which resulted in a 10.8 per cent year-over-year price in September.
Another product on a costly rise is canned and other preserved fish. In September the inflation rate was at 8.9 per cent, a 3.5 per cent increase from August.
Some meat products are also increasing in price.
Pork, which had a large drop in price in August, climbed 6.1 per cent by September, resulting in a 3.7 per cent year-over-year rate.
Fresh and frozen chicken increased in price month-to-month by 3.5 per cent, landing at a 6.2 year-over-year price.
PRODUCTS WITH SLOWING INFLATION RATE
Although grocery prices remain inflated, there are some foods that dropped in price in September.
Ham and bacon saw the most significant drop in rate of inflation year-over-year, decreasing 7.5 per cent. The product did have a 2.2 per cent increase from August to September.
There were large decreases in the prices of oranges and potatoes which saw a five and 5.1 per cent drop in price from August.
Year-over-year oranges remained at a 6.1 per cent inflation rate, whereas potatoes were pegged at a rate of 5.2 per cent.
Dairy products did have a small dip in price for September, the report notes.
Butter decreased 3.8 per cent in August, but still remained at a 6.3 per cent year-over-year rate.
Eggs saw a small dip of 0.7 per cent. From September 2022 to September 2023 the inflation rate for eggs was 3.1 per cent.
Coffee, tea, flour and flour-based mixes also saw decreases in inflation month-to-month, with a 2.6 and 3.1 per cent drop respectively.
