Canada’s annual inflation rate dropped to 2.2% in October, Statistics Canada said Monday. The number matched what many economists had expected.
Gas prices were a major reason for the slowdown, falling 9.4% compared to last year. Without gasoline, overall prices rose 2.6%, the same as in September.
Economists say the report supports the Bank of Canada’s view that interest rates should stay where they are. Some costs, like home and auto insurance, are still rising quickly. Cell phone service prices also jumped, showing the biggest yearly increase since 1982.
Grocery prices were up 3.4% from last year, slightly less than in September, but still higher than overall inflation. Natural gas prices fell 17%.
Many experts believe the Bank of Canada is unlikely to cut interest rates again soon. They say inflation is easing but not enough, and some price pressures remain “sticky.”
The Bank of Canada’s core inflation measures also fell to 2.9% in October. Month-over-month, overall prices rose 0.2% (or 0.1% after seasonal adjustment).
