{"id":139326,"date":"2025-11-18T06:35:18","date_gmt":"2025-11-18T06:35:18","guid":{"rendered":"https:\/\/www.newsbeep.com\/il\/139326\/"},"modified":"2025-11-18T06:35:18","modified_gmt":"2025-11-18T06:35:18","slug":"october-inflation-has-economists-expecting-another-bank-of-canada-hold","status":"publish","type":"post","link":"https:\/\/www.newsbeep.com\/il\/139326\/","title":{"rendered":"October inflation has economists expecting another Bank of Canada hold"},"content":{"rendered":"\n

Canada\u2019s inflation rate<\/a> of 2.2 per cent in October is approaching the Bank of Canada\u2019s target of two per cent, but some underlying inflation numbers have economists expecting policymakers to hold rates at their next meeting.<\/p>\n

Here\u2019s what they had to say about the latest consumer price index (CPI) numbers:<\/p>\n

Bank of Montreal chief economist Douglas Porter called Monday\u2019s inflation data<\/a> \u201ca tad on the disappointing side,\u201d mainly because the dip in inflation was largely from a drop in gasoline and food prices, while other measures rose.<\/p>\n

Rent, which Porter called the single biggest driver of inflation, was back up to 5.2 per cent year over year, while telephone services had the largest yearly price increase since 1982.<\/p>\n

\u201cStill, a pullback in grocery prices, perhaps in part courtesy of the rollback in retaliatory tariffs, helped moderate the Bank of Canada\u2019s core measures,\u201d he said in a note.<\/p>\n

Porter called the CPI report \u201cmildly friendly\u201d on the surface, but said the underlying numbers aren\u2019t great, meaning the Bank of Canada is likely to once again hold rates again at its next meeting on Dec. 10.<\/p>\n

The inflation reading was a mixed bag for the Bank of Canada, according to Royal Bank of Canada economist Abbey Xu.<\/p>\n

On one hand, median price growth was up only 0.1 per cent, but the three-month average remained above 2.5 per cent.<\/p>\n

Still, inflation fell in line with what Xu was expecting, as resilient consumer demand has kept prices elevated, leading her to expect an interest rate hold in December.<\/p>\n

\u201cThe (Bank of Canada) has indicated the overnight interest rate is \u2018about the right level\u2019 provided inflation and economic activity continue following the October projections,\u201d she said in a note. \u201cGiven that backdrop, we do not expect further interest rate reductions from the (Bank of Canada).\u201d<\/p>\n

Despite inflation coming in a little higher than expected, Stephen Brown, deputy chief North America economist at Capital Economics Ltd., said the good news for the Bank of Canada is that the drivers of inflation in October were \u201cconcentrated in a narrow range of items,\u201d including local property taxes and recreation.<\/p>\n

\u201cWhile it is still early days and the three-month annualized rate only edged down to 2.6 per cent, from 2.7 per cent, that lends some support to our view that the (Bank of Canada) is overestimating underlying inflation pressures,\u201d he said in a note.<\/p>\n","protected":false},"excerpt":{"rendered":"Canada\u2019s inflation rate of 2.2 per cent in October is approaching the Bank of Canada\u2019s target of two…\n","protected":false},"author":2,"featured_media":139327,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[2845,27005,114,2846,184,85,6861,86382,9570,46,7771,86381],"class_list":["post-139326","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-bank-of-canada","tag-bank-of-montreal","tag-business","tag-douglas-porter","tag-economy","tag-il","tag-inflation-data","tag-inflation-pressures","tag-inflation-rate","tag-israel","tag-toronto-blue-jays","tag-underlying-inflation-numbers"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/139326","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/comments?post=139326"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/posts\/139326\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media\/139327"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/media?parent=139326"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/categories?post=139326"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/il\/wp-json\/wp\/v2\/tags?post=139326"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}