Inflation edges slightly higher in October to 2 per cent in Canada

Inflation rose by 0.1 per cent in October compared to September in Canada. The increase was driven by higher energy prices.

The Consumer Price Index (CPI), which measures the change in the prices of goods and services, rose to 2 per cent in October. This is up from 1.9 per cent in September. The increase was driven by higher energy prices, which rose by 2.4 per cent. The increase in energy prices was due to higher gas prices, which rose by 4.3 per cent.

The CPI measures the change in the prices of goods and services purchased by consumers. This includes items such as food, clothing, housing, transportation, and recreation. The CPI is a key indicator of inflation, which is the rate at which prices are rising.

The Bank of Canada (BoC) targets an inflation rate of 2 per cent. This is because the BoC believes that 2 per cent inflation is the best target for the Canadian economy. Too much inflation can lead to higher interest rates, which can slow down economic growth. Too little inflation can lead to deflation, which can also hurt the economy.

The BoC is expected to raise interest rates again in December. This will be the eighth rate hike since March. The BoC is raising interest rates to combat inflation. Higher interest rates make it more expensive for businesses and consumers to borrow money. This can lead to slower spending, which can help to reduce inflation.

The increase in inflation in October is a concern for the BoC. The BoC is expected to continue to raise interest rates in an effort to bring inflation back down to 2 per cent.