Inflation hits 3.1%: gas up, groceries cool
📘 Related guide: Personal budget: set limits per category in 20 minutes
What happened
On October 19, 2026, Statistics Canada reported that the Consumer Price Index (CPI) was 3.1% higher in September than a year earlier. The CPI is the number that tracks how much everyday prices rise over time. In August it was 3.0%.
Energy pushed the number up. Gasoline cost 27.8% more than a year ago (it was 22.8% in August), and fuel oil, which some homes use for heating, was up 57.8%. Without gasoline, inflation was 2.2%. At the same time, food bought in stores rose only 1.7%, the smallest yearly increase since May 2024, and rent rose 2.8%. These are the figures in the Statistics Canada release.
How it affects you
One national number hides who feels what. Someone who drives every day feels this very differently from someone who takes transit. Here is an illustration. The monthly budget amounts below are assumptions, not official data. Only the percentages come from Statistics Canada.
Example: a household spends $200 a month on gasoline, $800 on groceries and $2,000 on rent. If its costs followed the national yearly changes, compared with a year ago:
- Gasoline: $200 now versus about $156.50 a year ago ($200 ÷ 1.278). That is about $43.50 more each month.
- Groceries: $800 now versus about $786.60 ($800 ÷ 1.017). About $13.40 more.
- Rent: $2,000 now versus about $1,945.50 ($2,000 ÷ 1.028). About $54.50 more.
Together that is roughly $111 more per month, or about $1,336 a year, for just these three items. Notice that gasoline is the item that moves the most. A household that drives twice as much would see twice the gas gap, while a household with no car would not feel it at all.
What you can do
- Add up what you spent on gas in the last three months. Knowing your own number is more useful than the national average.
- Check your lease: when it renews and how much your province allows rent to go up. Rules differ by province, so read your provincial tenancy information.
- Take advantage of slower food prices. Compare the price per kilo or per 100 grams, not only the sticker price. Fresh vegetables fell 2.9% in a year, while fresh or frozen beef is still up 8.7%.
- If you heat with fuel oil, ask your supplier how prices are set and whether you can plan your deliveries.
What to keep in mind
The 3.1% is a national average, so your personal inflation can be higher or lower depending on where you live, whether you drive and whether you rent or own. Rent rose fastest in Atlantic Canada, and the 2.8% for rent is also an average: what you pay depends on your lease.
This is one month of data. Statistics Canada notes that the switch to the cheaper winter blend of gasoline moderated the gas increase in September, so the number can change from month to month. Mortgage interest cost was down 0.2% from a year earlier, which means people with a mortgage did not see that cost rise in this measure.
This article is general information, not financial advice. The examples use assumed numbers to help you do your own math.
Sources
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Information checked against the sources listed above on October 19, 2026. Educational information, not financial, tax or legal advice.
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