Statistics Canada reported the annual inflation rate slowed to a reading of 3.8 per cent in September as prices began to slow compared to last year.
The latest data comes after the annual rate rose over the summer, reaching four percent in August.
The report showed consumers paid less for airfare than a year earlier, while prices of durable goods also fell.
Statistics Canada said grocery prices continued to rise rapidly, but the growth rate fell to 5.8 per cent in September, down from 6.9 per cent in August.
Meanwhile, higher petrol prices put pressure on inflation, as prices are 7.5 percent higher than in September 2022.
This latest data is released a week before the next Bank of Canada interest rate announcement and the latest estimate for inflation.
The US dollar showed a strengthening of 0.51% against the Canadian currency after the Canadian CPI and U.S. Retail Sales data were released.
