Canada's inflation rate slows to 3.8%

Canada's inflation rate decelerated to 3.8 per cent in September, down from four per cent in August.

Canada's inflation rate decelerated to 3.8 per cent in September, down from four per cent in August.

The figure, which was reported by Statistics Canada on Tuesday, was lower than economists were expecting.

The data agency said the deceleration in the cost of living was "broad-based" and stemmed from lower prices for a variety of goods and services, including travel, durable goods and some grocery items.

On a monthly basis, the cost of living actually declined in September, by 0.1 per cent. That's the first time that's happened since November of last year.

Gasoline prices fell by 1.3 per cent during the month, but they're still up by 7.5 per cent in the past 12 months, which is why fuel costs were one of the biggest factors pushing up the annual rate.

If gasoline is stripped out of the inflation numbers, the rate would have been 3.7 per cent. That's down from 4.1 per cent the month before.