According to Statistics Canada, prices at the pump jumped 32.8 per cent in September over the same month last year as inflation rose 4.4 per cent on a year-over-year basis in September, the fastest pace since February 2003.
The figures require some context. Gasoline prices rose from lower price levels in 2020 thanks to the COVID-19 pandemic as economies around the world slowed down, leading to less demand and therefore lower prices for gasoline. Demand has since increased with the global economic recovery.
Excluding the spike in gasoline prices, inflation still rose 3.5 per cent year over year in September. Overall, were up in every major component, with transportation costs (up 9.1 per cent) contributing the most to the increase. Higher shelter (up 4.8 per cent) and food prices (up 3.9 per cent) also contributed to inflation.
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