Canada's Inflation Rate Rises Slightly to 2% in October

What You Need to Know

• Canada's inflation rate rose to 2% in October, up from 1.9% in September.
• The increase was driven by higher prices for food, shelter, and transportation.
• The Bank of Canada is expected to raise interest rates again in December to combat inflation.

Inflation Remains Within the Bank of Canada's Target Range

The Bank of Canada's target inflation rate is 2%, and the latest reading shows that inflation is still within that range.

However, the Bank of Canada has been raising interest rates in an effort to bring inflation down to its target. The Bank is expected to raise interest rates again in December.

Higher Prices for Food, Shelter, and Transportation

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

Food prices rose by 0.6% in October, driven by higher prices for meat, vegetables, and fruit.

Shelter costs rose by 0.4%, driven by higher prices for rent and home insurance.

Transportation costs rose by 1.1%, driven by higher prices for gasoline and public transit.

What to Expect in the Coming Months

Economists expect inflation to remain elevated in the coming months.

The Bank of Canada is expected to raise interest rates again in December in an effort to bring inflation down to its target.

Higher interest rates will make it more expensive to borrow money, which could slow down economic growth.