FX.co ★ Canada CPI Turns Positive in September, Easing Deflation Concerns

Canada’s consumer price index (CPI) edged back into positive territory in September 2026, with month-over-month inflation registering 0.1%, according to data updated on 19 October 2026. The move marks a reversal from August 2026, when prices fell 0.1% on a monthly basis.

The shift from a slight monthly decline in August to a modest increase in September suggests that near-term deflationary pressures have eased. On a month-over-month basis, the latest reading compares the price change in September with August, while the previous figure reflected the change in August relative to July.

For markets and policymakers, the return to positive monthly CPI growth may temper concerns about weakening demand, but the subdued 0.1% rise also signals that price pressures remain contained. Investors will watch upcoming data closely to assess whether September’s uptick marks the start of a firmer inflation trend or simply a brief pause in disinflation.