Canada's Inflation Hits 3.1% as Fuel Oil Costs Jump 58%

Statistics Canada reported headline inflation accelerating to 3.1% in September from 3.0% in August, driven almost entirely by energy commodities. Gasoline prices rose 27.8% year-on-year, up sharply from 22.8% in August despite the seasonal switch to cheaper winter blend fuel, while fuel oil and other heating fuels spiked 57.8%, up from 43.7% a month earlier.

The overall energy index climbed 19%, up from 15.4% previously, with Atlantic Canada bearing the heaviest burden given its reliance on oil heating. The data underscores how the Iran conflict's impact on crude benchmarks is feeding directly into consumer price pressures, complicating the inflation outlook for a G7 economy already navigating elevated import costs.