Statistics Canada says the annual inflation rate slowed to 3.8 per cent last month as prices year-over-year rose more slowly across the economy.

The report shows consumers paid significantly less for airfare compared with a year ago, while prices for durable goods also fell. Gasoline, though, jumped by 7.5 per cent year over year.

The cost of living in Newfoundland and Labrador jumped by more than the national average—4.1 per cent. Only Nova Scotia and Quebec had higher rates of inflation than NL—4.8 per cent. The price index rose by 4.4 per cent in the metropolitan region last month—up from 4.2 in August.

The Bank of Canada will set its new interest rate next week.