Statistics Canada reported on Wednesday the country’s consumer price index (CPI) fell 0.4 percent m-o-m in September, following a 0.1 percent m-o-m decline in the previous month.

On the y-o-y basis, Canada’s inflation rate increased 1.9 percent last month, matching the gain in August.

Economists had predicted inflation would decrease 0.2 percent m-o-m but advance 2.1 percent y-o-y in September.

According to the report, prices for goods (+1.3 percent y-o-y) rose at a faster rate in September than in the previous month, while prices for services (+2.2 percent y-o-y) increased at a slower pace compared with August. 

The cost of gasoline tumbled 10.0 percent y-o-y in September, following a 10.2 percent y-o-y decline in August. Excluding gasoline, the CPI rose 2.4 percent y-o-y, matching the increase in July.

Meanwhile, the closely watched the Bank of Canada's core index rose 1.9 percent y-o-y in September, the same pace as in the previous month. Economists had forecast an advance of 1.9 percent y-o-y.