The cost of living is on the rise once again, with soaring food prices driving up the inflation rate in Canada, according to the latest data.
The <a href="https://www150.statcan.gc.ca/n1/daily-quotidien/251021/dq251021a-eng.htm" target="_blank">Consumer Price Index for September</a> reveals that inflation in Canada rose at a rate of 2.4 per cent compared to September last year. In August this year, inflation increased by 1.9 per cent.
The largest increase was in food prices, with Canadians paying more for produce, beef, and sugar. In September, grocery prices rose by four per cent compared to last year&#8217;s 2.4 per cent increase, contributing to the overall increase in inflation.
<div id="attachment_2204854" style="width: 2570px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-2204854" class="size-full wp-image-2204854" src="https://images-dh-production-baselayer.dailyhive.com/uploads/2025/10/shutterstock_2553957799-scaled.jpg" alt="canada inflation rate" width="2560" height="1707" srcset="https://images-dh-production-baselayer.dailyhive.com/uploads/2025/10/shutterstock_2553957799-scaled.jpg 2560w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/10/shutterstock_2553957799-500x333.jpg 500w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/10/shutterstock_2553957799-1024x683.jpg 1024w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/10/shutterstock_2553957799-1536x1024.jpg 1536w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/10/shutterstock_2553957799-2048x1365.jpg 2048w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/10/shutterstock_2553957799-1200x800.jpg 1200w" sizes="(max-width: 2560px) 100vw, 2560px" />vietanh85/Shutterstock</div>
&#8220;Consumers paid four per cent more year over year for food purchased from stores in September, following a 3.5 per cent increase in August,&#8221; reads the report.
Canadian shoppers saw the highest increase in prices for fresh vegetables, which rose by 1.9 per cent in September compared to a two per cent drop in August. Sweet-toothed Canadians saw the price for sugar and confectionery soar by 9.2 per cent, compared to a 5.8 per cent increase in August.
The report states, &#8220;Grocery items contributing to the general acceleration included fresh or frozen beef and coffee, both due, in part, to lower supply.&#8221;
Grocery price inflation last hit a low in April 2024, with a 1.4 per cent increase, but prices have been climbing ever since.
<h2>Inflation goes up in other categories</h2>
It&#8217;s not just food — Canadians are paying more for other essentials.
According to StatCan, the cost of shelter went up by 2.6 per cent compared to last year. Nationally, rent increased 4.8 per cent in September, slightly up from 4.5 per cent in August. Renters in Quebec saw the sharpest jump at 9.6 per cent, while British Columbia — typically among the most expensive provinces — saw slower growth at just 1.8 per cent.
<div id="attachment_2204834" style="width: 2570px" class="wp-caption alignnone"><img loading="lazy" decoding="async" aria-describedby="caption-attachment-2204834" class="size-full wp-image-2204834" src="https://images-dh-production-baselayer.dailyhive.com/uploads/2025/10/shutterstock_2687346017-scaled.jpg" alt="canada inflation rate" width="2560" height="1707" srcset="https://images-dh-production-baselayer.dailyhive.com/uploads/2025/10/shutterstock_2687346017-scaled.jpg 2560w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/10/shutterstock_2687346017-500x333.jpg 500w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/10/shutterstock_2687346017-1024x683.jpg 1024w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/10/shutterstock_2687346017-1536x1024.jpg 1536w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/10/shutterstock_2687346017-2048x1365.jpg 2048w, https://images-dh-production-baselayer.dailyhive.com/uploads/2025/10/shutterstock_2687346017-1200x800.jpg 1200w" sizes="(max-width: 2560px) 100vw, 2560px" />Roy Harris/Shutterstock</div>
Gas prices fell 12.7 per cent in August, then eased by a smaller 4.1 per cent drop in September.
The cost of tuition has remained stable — fees increased by 1.8 per cent in September 2024 and by 1.7 per cent this September.
Although the cost of travel decreased by 9.3 per cent in August, the price of travel tours only fell by 1.3 per cent compared to last year.
&#8220;Despite typically declining on a month-over-month basis in September, travel tour prices rose 4.6 per cent in the month,&#8221; reads the report. &#8220;This was a result of higher prices for destinations in Europe and some parts of the United States, as major events in destination cities put upward pressure on hotel prices.&#8221;
Inflation affected provinces differently, with typically expensive regions such as Ontario and British Columbia experiencing relatively smaller increases. In Ontario, inflation rose to two per cent in September, up from 1.7 per cent in August, while in British Columbia, it inched up to 1.9 per cent from 1.8 per cent the previous month. Currently, Quebec has the highest inflation rate at 3.3 per cent.
Manitoba and Saskatchewan saw the highest increase. Inflation in Manitoba jumped from two per cent in August to 2.9 per cent in September, while in Saskatchewan, it rose from 1.7 per cent to 2.6 per cent over the same period.
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The cost of living is on the rise once again, with soaring food prices driving up the inflation rate in Canada, according to the latest data.