FX.co ★ Canada’s Core CPI Cools to 2.2% in September, Easing from August’s 2.4%

Canada’s underlying inflation pressures eased in September 2026, with Core Consumer Price Index (Core CPI) growth slowing to 2.2% year-over-year, down from 2.4% in August 2026. The latest figures, updated on 19 October 2026, indicate a modest but notable cooling in core price dynamics compared with the same period a year earlier.

The year-over-year comparison shows that the pace of core inflation—stripping out more volatile components—continued to drift closer to the lower half of the typical 2% inflation target range. The “actual” figure reflects the change in prices in September 2026 versus September a year before, while the “previous” measure captured August 2026 against its year-ago level.

This incremental slowdown in Core CPI may be read by markets and policymakers as a sign that underlying inflationary pressures are gradually easing, potentially reducing the urgency for further tightening measures if the trend persists in subsequent months.