money (Photo courtesy of alfexe / Royalty Free / iStock / Getty Images Plus)(Photo courtesy of alfexe / Royalty Free / iStock / Getty Images Plus)

Inflation inches closer to Bank of Canada target

Inflation continued to close in on the Bank of Canada's target of 2 per cent in October, coming in at 3.1 per cent compared to one year ago.

Statistics Canada's Consumer Price Index report showed a drop of 0.7 percentage points from September, driven mainly by a drop in the price of gasoline.

After a 7.5 per cent increase in September, the cost to fill up the tank dropped 7.8 per cent last month, thanks to lower refining margins as producers switched to the cheaper winter gas blend and the base-year effect.

Drivers will remember gas rose 9.2 per cent in October 2022 when the Organization of Petroleum Exporting Countries, or OPEC, announced production cuts.

Without gasoline, inflation was 3.6 per cent in October, down from 3.7 per cent in September.

Canadians spent 5.4 per cent more on groceries than in October 2022, but the speed costs climbed slowed. Food prices were up 5.8 per cent in September.

The other indicator driving up inflation last month was the cost of services. Overall, that rose 4.6 per cent year over year.

Rent increased 8.3 per cent following September's 7.3 per cent jump. Property taxes rose 4.9 per cent from October of last year, and travel tours, particularly to U.S. destinations, went up 11.3 per cent after a 2.2 per cent drop the month before.

Statistics Canada will release the inflation rate for November on December 19.

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