The annualized Consumer Price Index fell by 0.9% in September compared with September 2008, following a 0.8% decrease in August over August 2008.         

The slowdown in September was again primarily due to energy prices, which were down 18.7% from September 2008 levels.  Gasoline prices fell 23.0% from September 2008, following a 12-month decline of 21.2% in August.  Excluding energy, the CPI rose 1.3% from September 2008.  Energy prices have declined every month since July 2008 when the index stood at 169.l compared to 131.3 in September 2009.      

Food prices rose 2.8% in the 12 months since September 2008, down from a 4.0% annual increase in August and 5.0% in July.  This was the 19^th straight month that food prices rose.  Food prices continued to be pushed up by higher prices for food purchased from stores (+2.7%).  Prices for meat increased 2.6% while prices for fish rose 8.8%.  As well increases were recorded for dairy products and eggs (+2.5%), sugar and confectionery (+8.7%), and food purchased from restaurants (+2.8%).  

Costs associated with shelter fell 1.8% in September following a 2.2% drop in August and a 2.0% decline in July.  The decrease primarily reflected price declines for natural gas (-33.0%), fuel oil and other fuels (-32.7%) and homeowner's replacement costs (-3.7%).  Shelter costs were also dampened by downward pressure from mortgage interest costs.  The Mortgage Interest Cost Index, which measures the change in the interest portion on outstanding mortgage debt, was down 2.2% compared with September  last year, following a 1.1% decrease in August.  This index had been slowing since reaching a peak of 9.0% in June 2008, reflecting the downward trend in mortgage interest rates and housing prices.  An 8.0% increase in homeowners' maintenance and repairs and a 3.2% increase in property taxes slowed the decline in the shelter index.     

The 23.0% drop in gasoline prices from September 2008 and the 5.9% fall in the cost of purchasing passenger vehicles were primarily responsible for the 7.2% annual decline in the transportation index, its eleventh consecutive decrease.  Increasing prices for passenger vehicle insurance (+5.1%) partially countered the overall decline in transportation costs in August.  

The clothing and footwear price index continued its prolonged downward trend, falling 1.2% in September, led by lower prices for women's and men's clothing.  

The only province where the annualized rate increases was Saskatchewan (+0.2%).  Ontario's CPI at 113.8 was down 1.1% from September 2008 .  The CPI declined most in Prince Edward Island (-1..4%) Alberta (-1.1%) and British Columbia (-1.2%).