Inflation holds steady, but B.C.’s prices are still soaring

The price at the pump and higher mortgage costs have been pinching the budgets of many Canadians, and propping up the rate of inflation.

Statistics Canada says the inflation rate for October was 6.9 per cent, holding steady from September’s 6.9 per cent, on a year-over-year basis.

Price growth had been slowing month-to-month since June’s high of 8.1 per cent, but the price of gas rose in October, as did interest rates for mortgages, and that was enough to offset a slowdown in inflation for groceries and natural gas.

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Despite the relative break in grocery price growth, especially for meat and fresh fruit and veggies, shoppers filling up their grocery carts are still dealing with soaring inflation.

Grocery prices have been rising at the fastest pace in decades — faster than the overall rate of inflation for eleven straight months.

The Bank of Canada has raised its key interest rates six times since March to clamp down on high inflation.

The central bank is expected to raise its key interest rate again next month.

On a regional basis, the rate of inflation was 7.8 per cent in B.C. in October, up from 7.7 per cent in September.

Vancouver’s inflation rate was 7.3 per cent, down from 7.7 per cent.

Inflation numbers come as Loblaw Companies Ltd. reported its third-quarter profit rose about 30 per cent compared with a year ago.

The grocery and drugstore retailer says its revenue totalled $17.39 billion, up from $16.05 billion in its third quarter of 2021. Food retail same-store sales rose 6.9 per cent, while drug store same-store sales added 7.7 per cent.

The grocer also noted a continued shift to private-label brands like President’s Choice and No Name.

Loblaw said Canadian retail food inflation remained among the lowest of G7 countries but that “global inflationary forces continued to increase the cost of food in the quarter.”

“Loblaw’s efforts to moderate cost increases and provide superior value to customers through its PC Optimum Program and promotions resulted in strong sales and stable gross margins in food retail,” the company said in a report to shareholders.

–With files from The Canadian Press