FX.co ★ Canadian Core CPI Rises to 2.8% in September, Signaling Inflationary Trends

Canada's Core Consumer Price Index (CPI), a key measure of underlying inflation without the noise of volatile components, increased from 2.6% in August to 2.8% in September 2025. This development marks a potentially significant upward trend in inflationary pressures within the Canadian economy.

Released on October 21, 2025, the latest data from Statistics Canada compares the changes month-over-month relative to the previous year’s figures. With this new reading, Core CPI has shown an uptick over the last two months, suggesting that underlying inflation is on a steady rise. This could pose challenges for the Bank of Canada in terms of their monetary policy as they balance controlling inflation with supporting economic growth.

The year-over-year comparison highlights a growing concern for policymakers and market stakeholders alike, as the prevailing economic conditions may necessitate further analysis to understand the variables driving this increase. This steady climb in core inflation could potentially signal adjustments in interest rates or other fiscal measures to maintain economic stability in Canada. As the situation evolves, all eyes will be on the Bank of Canada's response to these inflationary pressures in the coming months.