Regina 
Canada’s annual inflation rate reached 3.1% in September 2026, up from 3.0% in August, according to Statistics Canada. Higher fuel costs were the main reason for the increase, although grocery price growth continued to slow.
Here are six key takeaways from the latest Consumer Price Index (CPI) report.
1. Inflation Rises, But Slows When Gasoline Is Excluded
Canada’s inflation rate increased to 3.1%, but excluding gasoline, inflation actually slowed to 2.2% from 2.4% in August. Consumer prices rose 0.1% month over month, or 0.4% on a seasonally adjusted basis.
2. Gasoline Prices Jump Nearly 28%
Gasoline prices climbed 27.8% year over year, compared with 22.8% in August. Overall energy prices increased 19.0%, as crude oil reached its highest level since May amid uncertainty surrounding wars in the Middle East. Fuel oil prices surged 57.8%, particularly affecting Atlantic Canadian households that rely on oil for heating.
3. Grocery Inflation Slows, But Prices Remain High
Grocery prices increased 1.7% year over year, the slowest growth since May 2024. Fresh vegetables cost 2.9% less, while sugar and confectionery prices fell 2.7%. Beef prices were still 8.7% higher than a year ago. Despite the slowdown, Statistics Canada noted that grocery “prices have increased 33.0% since September 2020.”
4. Rent and Homeownership Costs Continue Rising
Shelter inflation accelerated to 1.8% from 1.5% in August. Rent increased 2.8% year over year, while homeowners paid 4.9% more for home and mortgage insurance. Maintenance and repair costs also rose 1.2%.
5. Atlantic Canada Faces Higher Inflation Pressures
Excluding energy, inflation reached 3.3% in Nova Scotia, 2.6% in Prince Edward Island and New Brunswick, and 2.4% in Newfoundland and Labrador. All four provinces exceeded the national rate of 2.1%. Rent prices also rose fastest in Atlantic Canada.
6. University Tuition Fees Increase Across Canada
Tuition fees rose 2.4% nationally in 2026, compared with 1.7% in 2025. Prince Edward Island recorded the largest increase at 4.9%, while Newfoundland and Labrador saw the smallest at 0.6%. Ontario tuition increased 2.1%, its largest rise since 2018, following the end of the provincial tuition freeze.
Consumer Price Index, September 2026
