Inflation slows for third consecutive month despite surging food prices

Stats Canada’s monthly consumer index report showed a deceleration for the third consecutive month.

The annual inflation rate dropped slightly in September to 6.9 per cent, but the cost of groceries continues to climb.

In its latest report, the federal agency says the slight deceleration from 7.0 per cent in August is mostly attributed to lower gas prices.

Gas prices fell by 7.4 per cent in September from a month prior.

Grocery prices rose at the fastest rate since August 1981, with prices up 11.4 per cent compared with a year ago.

For homeowners or prospective buyers, higher interest rates are pushing up the cost of mortgage interest, while other costs rise at a slower pace.

Saskatchewan’s inflation rate rose from 6.8 per cent to 7.1 per cent in September.

— With files from The Canadian Press