Canada inflation rises to 3.1% in September

Canada’s annual inflation rate rose to 3.1 percent in September from 3.0 percent in August, Statistics Canada said Monday.

The agency said the acceleration was mainly due to higher energy prices. Gasoline prices rose 27.8 percent year over year in September, compared with 22.8 percent in August.

Statistics Canada said slower growth in food costs partly offset the rise.

TB Bank economist Leslie Preston said there was little evidence that higher energy costs were feeding into broader price pressures, which she described as mild. She also said the Canadian economy faced downside risks from tariffs and a volatile trade relationship with the United States.

Canada and the United States have been in a trade dispute, with both sides imposing tariffs after talks broke down in late August.