Signage mark the Statistics Canada offices in Ottawa on July 21, 2010. THE CANADIAN PRESS/Sean Kilpatrick

Annual inflation rises to 2.4% thanks to higher costs for gas, airline tickets

Year-over-year prices at the pump were 12 per cent higher in October, air transportation prices were up 9.4 per cent and mortgage interest costs climbed seven per cent, the report said.

The country’s annual inflation rate picked up its pace last month to hit 2.4 per cent in an advance mostly fuelled by higher gasoline prices, compared to a year ago, Statistics Canada said Friday.

The federal agency’s October inflation number marked an increase from 2.2 per cent in September and pushed the reading a little farther away from the Bank of Canada’s ideal, two per cent target.

Economists had expected October inflation to be 2.2 per cent, according to a poll by Thomson Reuters Eikon.

Year-over-year prices at the pump were 12 per cent higher in October, air transportation prices were up 9.4 per cent and mortgage interest costs climbed seven per cent, the report said.

The downward pressure month was led by prices declines of 7.2 per cent for video equipment, four per cent for telephone services and 3.9 per cent for traveller accommodation, compared to a year earlier.

Prices were higher last month in all provinces compared to October 2017, but Alberta was the only one to show a slower pace of inflation. A year earlier Alberta’s inflation rate was three per cent, while last month the pace was 2.8 per cent.

Read more: Annual pace of inflation slows to 2.2 per cent in September: Statistics Canada

In Ontario, Statistics Canada said energy prices slid 2.4 per cent on a month-to-month basis after the provincial government got rid of its carbon cap and trade program, which had been introduced last January.

The average of the agency’s three core inflation readings, which omit more-volatile items like gas prices, edged slightly higher to two per cent last month to hit the Bank of Canada’s bull’s-eye. The average core, or underlying, measure was 1.93 per cent in September, 2.03 per cent in August and 1.97 per cent in July.

The central bank pays close attention to core inflation ahead of its interest-rate decisions — and it can raise its trend-setting rate as a way to keep inflation from rising too high. It aims to keep inflation within a range of one to three per cent, with the two per cent mid-point as its primary target.

Bank of Canada governor Stephen Poloz’s next interest-rate announcement is scheduled for Dec. 5.

In a separate report Friday, Statistics Canada said retail sales for September moved up 0.2 per cent compared with August. Month-to-month retail trade was essentially unchanged in August and saw an increase of 0.2 per cent in July.

The September increase brought retail trade to $50.9 billion for the month.

The main contributor behind the increase were higher sales, of 0.9 per cent, at food and beverage stores. Supermarkets saw sales rise 1.7 per cent, which more than made up for a 1.7 per cent decline in beer, wine and liquor stores.

Sales also rose at general merchandise stores by 1.2 per cent, while motor vehicle and parts dealers saw an increase of 0.5 per cent.

Read more: B.C. rent increases capped to inflation, 2.5% for 2019

Andy Blatchford, The Canadian Press

Like us on Facebook and follow us on Twitter.

Just Posted

Penalties sink Ice against Hurricanes

The Kootenay Ice lost 5-2 against the visiting Lethbridge Hurricanes on their Family Day Game

Crowds pack downtown core for Blitzville

Crowds flocked to the downtown Cranbrook core to take in the inaugural… Continue reading

Blades cut through Kootenay Ice 8-3

The Ice couldn’t come back against the Saskatoon Blades after an early three-goal deficit

Gord McArthur back in action from retirement

After eight years McArthur slew his kryptonite at the World Cup Ice Climbing tour in Switzerland

RDEK takes steps towards reducing carcass pit use

The first step towards addressing the issue of carcass pits in the… Continue reading

Trudeau’s principal secretary, Gerald Butts, resigns amid SNC-Lavalin furor

Butts categorically denies the accusation that he or anyone else in the PMO improperly pressured former attorney general Jody Wilson-Raybould

Lost a ring? This B.C. man will find it for you

Chris Turner founded The Ring Finders, an international directory of metal detector hobbyists

Poverty coalition has high hopes for B.C. poverty reduction strategy

Funding allocation expected to be released with 2019 budget

East Kootenay mine deaths prompt safety initiatives

Teck produces educational video, introduces new procedures after contractor drowns at Fording River

‘How did we get here?’: B.C. mom of transplant recipient worries about measles outbreaks

Addison, 7, cannot get a live vaccine because she has a heart transplant

NDP Leader Jagmeet Singh calls for public inquiry over SNC-Lavalin questions

Vancouver member of Parliament Jody Wilson-Raybould resigned from cabinet last week

Canadian airlines waiting for guidance from Ottawa over X gender option

Major U.S. airlines said they will change their process so passengers can identify themselves along non-binary lines

Moose Hide campaign takes message to Canadian schools

Campaign launches new K-12 education platform

‘Violent’ B.C. man wanted on Canada-wide warrant

Prince George man with ties to Vernon sought by police

Most Read