Consumer Price Index, September 2025
October 24, 2025
The Consumer Price Index (CPI) rose 2.4% on a year-over-year basis in September, up from a 1.9% increase in August.
On a year-over-year basis, gasoline prices fell less in September (-4.1%) compared with August (-12.7%) due to a base-year effect, leading to an acceleration in headline inflation. Excluding gasoline, the CPI rose 2.6% in September, after increasing 2.4% in August.
A slower year-over-year decline in prices for travel tours (-1.3%) and a larger increase in prices for food purchased from stores (+4.0%) also contributed to the upward pressure in the all-items CPI in September.
The CPI rose 0.1% month over month in September. On a seasonally adjusted monthly basis, the CPI was up 0.4%.
Chart 1
The 12-month change in the Consumer Price Index (CPI) and CPI excluding gasoline
Chart 2
Price growth accelerates in five major components
Smaller year-over-year decline in gasoline prices
Prices for gasoline fell 4.1% year over year in September after a 12.7% decrease in August. The smaller year-over-year decline was largely due to a base-year effect. In September 2024, prices fell 7.1% month over month due, in part, to lower crude oil prices amid growing concerns of weaker economic growth, particularly in China and the United States. In September 2025, gasoline prices rose 1.9% on a monthly basis following refinery disruptions and maintenance in the United States and Canada, which put upward pressure on prices.
Infographic 1
Smaller year-over-year decline in gasoline prices in September than in August
September increase leads to smaller year-over-year decline in travel tour prices
On a year-over-year basis, prices for travel tours fell 1.3% in September following a 9.3% decline in August. Despite typically declining on a month-over-month basis in September, travel tour prices rose 4.6% in the month. This was a result of higher prices for destinations in Europe and some parts of the United States, as major events in destination cities put upward pressure on hotel prices.
Grocery prices rise at a faster pace compared with last year
Consumers paid 4.0% more year over year for food purchased from stores in September, following a 3.5% increase in August. Faster price growth was driven by increased prices for fresh vegetables (+1.9% in September, compared with -2.0% in August) and sugar and confectionery (+9.2% in September, compared with +5.8% in August).
Year-over-year grocery price inflation has generally trended upward since its most recent low in April 2024 (+1.4%). Grocery items contributing to the general acceleration included fresh or frozen beef and coffee, both due, in part, to lower supply.
Chart 3
September 2025 marks the largest year-over-year increase in grocery prices since the most recent low in April 2024
Clothing prices decelerate year over year
Following a year-over-year increase of 1.7% in August, the clothing and footwear index rose 0.8% in September. This slower growth helped moderate the acceleration in the all-items CPI. The downward pressure was driven by slower growth in clothing prices, partially offset by a smaller decline in footwear prices. On a month-over-month basis, clothing prices fell 0.3% in September. This was the first month-over-month decline in September since 1998.
Tuition fees rise at a similar pace in 2025 compared with 2024
Tuition fees, priced annually in September, increased 1.7% in 2025 compared with a 1.8% increase in 2024. Aside from 2019, the 2025 increase was the smallest since 1976, when the index was unchanged (0.0%).
In 2025, students from Prince Edward Island (+4.7%) experienced the largest price increase. At the same time, students from Nova Scotia (+1.1%) and Ontario (+1.1%) had the smallest increase, coinciding with a freeze on tuition fees in both provinces.
