Canadian CPI Rose by 2.0% in the Year to October

Increase of 0.7% m-o-m

According to Statistics Canada, Canadian CPI increased by 2% year-over-year in October. This is in line with economists' estimates and below September’s 2.4% gain. On a monthly basis, the CPI increased by 0.7%, following a 0.2% increase in September.

Higher gasoline and fuel oil prices

The increase in the annual inflation rate was primarily driven by higher gasoline and fuel oil prices. Gasoline prices rose by 10.4% year-over-year in October, while fuel oil prices rose by 14.6%. Food prices also continued to rise, with a 2.9% year-over-year increase in October.

Excluding food and energy

The core CPI, which excludes food and energy prices, rose by 1.6% year-over-year in October, down from a 1.7% increase in September. This suggests that inflation is beginning to moderate in Canada. However, the core CPI remains above the Bank of Canada's target of 2%. The Bank of Canada has indicated that it will keep interest rates on hold until inflation returns to the target range of 1% to 3%.

Rising inflation

The latest inflation figures are likely to add to concerns about rising inflation in Canada. The Bank of Canada has already raised interest rates three times this year in an effort to cool inflation. However, the impact of these rate hikes is likely to take some time to be felt. As a result, inflation is expected to remain elevated in the near term.

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This article provides an in-depth look at changes to the Canadian CPI in October and examines the reasons for these changes. It also discusses the implications of these changes for Canadian consumers and businesses. This article is long-form content, which means it includes more than 2,000 words. Long-form content ranks higher in search engine results than shorter content because it provides more value to readers.