Still High, but Some Moderation in Food Prices in October

Canadian food prices showed some moderation but continued to rise at a faster pace than most other consumer goods and services in October. 

The latest monthly release of Statistics Canada’s Consumer Price Index (CPI) on Wednesday showed food prices up 10.1% in the year up to October, down slightly from the 10.3% gain seen in September. That slowdown - as prices for meat, fresh fruit, and fresh vegetables increased at a slower pace versus the previous month - helped the overall inflation rate for October hold steady at 6.9%. 

Still, the price of food continued to increase at a faster rate year over year than headline inflation for the eleventh consecutive month. 

Canadians paid more in October for dry or fresh pasta (+44.8%), margarine (+40.4%), lettuce (+30.2%), rice and rice-based mixes (+14.7%), and soup (+18.4%), among other food items. Meanwhile, prices for some food commodities, such as dairy products (+10.6%) and eggs (+13.8%), increased year over year in October, mainly due to approved producer price increases from their respective governing boards, StatsCan said. 

Gas prices were reported 9.2% higher in October than in September, with StatsCan attributing the gain to a weaker Canadian dollar and cuts in production from OPEC+. And with interest rates rising, mortgage interest costs were up 11.4% year-over-year, marking the biggest increase since February 1991, Statistics Canada said.