The consumer price index increased 2.0% year over year in October in Canada, which was higher than the 1.6% increase observed in September.
According to Statistics Canada, the difference between September and October is partly explained by the fact that the drop in the price of gasoline was less marked last month (-4.0%) than it was in September (-10.7%).
The federal agency noted that prices for food purchased in stores showed a 2.7% year-over-year increase in October, which was higher than 2.4% in September. It was the third consecutive month that price growth at grocery stores outpaced overall inflation.
A more encouraging sign: house price growth continued to slow. Prices rose 4.8% year over year in October, following a 5.0% increase in September.
Rent prices also recorded a lower year-on-year increase in October (7.3%) than in September (8.2%).
In Quebec, inflation was 1.6% in October, after being 1.3% in September. According to Statistics Canada, prices increased more pronounced in October in all provinces compared to September.
Now that inflation appears to be stabilizing around the Bank of Canada’s 2.0% target, the central bank is expected to continue cutting interest rates in the coming months, including at its next policy meeting, in December.
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