Canada's annual inflation rate hits 2% in October

What does this mean for Canadians?

The annual inflation rate in Canada rose to 2% in October, up from 1.7% in September. This is the highest level of inflation since August 2020.

The increase in inflation was driven by higher prices for food, shelter, and transportation.

Food prices

Food prices rose 3.9% in October, the largest monthly increase since May 2020.

The increase was driven by higher prices for meat, vegetables, and fruit.

Shelter prices

Shelter prices rose 1.8% in October, the largest monthly increase since April 2020.

The increase was driven by higher prices for rent and home ownership.

Transportation prices

Transportation prices rose 5.5% in October, the largest monthly increase since March 2021.

The increase was driven by higher prices for gasoline and new vehicles.

What is the Bank of Canada doing?

The Bank of Canada is raising interest rates to try to bring inflation under control.

The bank has raised interest rates three times this year, and it is expected to raise rates again in December.

What can Canadians do?

Canadians can help to reduce inflation by spending less and saving more.

They can also reduce their spending on non-essential items and look for ways to reduce their transportation costs.

Conclusion

The annual inflation rate in Canada rose to 2% in October, the highest level since August 2020. The increase in inflation was driven by higher prices for food, shelter, and transportation. The Bank of Canada is raising interest rates to try to bring inflation under control. Canadians can help to reduce inflation by spending less and saving more.