Canada’s annual inflation rate in October eased to 2.2% as gasoline prices dropped, food prices eased and mortgage interest costs came down below the 3% mark, data showed today.<\/p>\n
The removal of a carbon levy on gasoline this year continued to depress yearly price increases for the past few months. Barring the carbon levy removal, the annual consumer price index rose by 2.7% in October from 2.9% in September, Statistics Canada said.<\/p>\n
Analysts polled by Reuters had forecast the inflation to beat 2.1% for October, down from 2.4% in September. On a monthly basis, they forecast inflation to be 0.2%.<\/p>\n
On a monthly basis, CPI inflation was in line with forecasts, StatsCan data showed.<\/p>\n
The Bank of Canada has cited stable inflation as one of the prime reasons to signal a halt in rate cuts last month. A further easing in October is likely to bolster its confidence to stand pat on the current policy rate of 2.25% next month.<\/p>\n
A bigger monthly decline in the price of gasoline in October brought down the annual price drop of the fuel to 9.4% in October compared with a drop of 4.1% in September. Th eyear-on-year fall in gasoline prices has been mainly due to the removal of the carbon levy on the fuel.<\/p>\n
Another contributor to the slower increase in inflation was food prices. Year over year, prices for food purchased from stores rose 3.4% in October, down from a 4% increase in September.<\/p>\n
Though grocery prices decelerated in October, prices remained elevated and have exceeded overall inflation for nine consecutive months, StatsCan said.<\/p>\n
Mortgage interest costs, a part of shelter inflation, increased at an annual pace of 2.9% in October. This was the first time in more than three years that they came down below 3%.<\/p>\n
However, rent inflation, another part of the overall shelter inflation, rose above 5%, clocking an acceleration for two months in a row.<\/p>\n
Due to volatility in prices and the government’s tax breaks, the Bank of Canada and economists have tracked the measures of core inflation to gauge price trends in Canada.<\/p>\n
One of the core measures of inflation, the CPI-median, or the centremost component of the CPI basket, was at 2.9% in October, down from a downwardly revised 3.1% in September, the statistics agency said.<\/p>\n
The other core measure, CPI-trim, which excludes the most extreme price changes, edged down to 3% in October from 3.1% in September.<\/p>\n","protected":false},"excerpt":{"rendered":"Canada’s annual inflation rate in October eased to 2.2% as gasoline prices dropped, food prices eased and mortgage…\n","protected":false},"author":2,"featured_media":268028,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[84,1294,56,54,55],"class_list":{"0":"post-268027","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-uk","11":"tag-united-kingdom","12":"tag-unitedkingdom"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/268027","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/comments?post=268027"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/posts\/268027\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media\/268028"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/media?parent=268027"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/categories?post=268027"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/uk\/wp-json\/wp\/v2\/tags?post=268027"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}