The Globe and Mail reports in its Thursday edition that Canada's inflation rate held steady in October after slowing for three months, boosting chances the Bank of Canada will raise interest rates again in December.
The Globe's Matt Lundy writes that the Consumer Price Index rose 6.9 per cent in October from a year earlier, matching September's inflation rate, Statistics Canada said on Wednesday. The result matched analyst expectations. On a monthly basis, consumer prices rose 0.7 per cent -- just shy of the 0.8-per-cent increase that Bay Street analysts had predicted. After hitting a near-four-decade high of 8.1 per cent in June, the annual inflation rate has eased somewhat, largely because gasoline prices have fallen from record highs seen in the aftermath of Russia's unprovoked invasion of Ukraine.
That dynamic, however, shifted again in October. Gas prices jumped 9.2 per cent from September, which Statscan attributed to a weaker loonie and announcements of oil production cuts overseas. The increase in gasoline costs offset slowing price growth for other items, such as groceries and travel-related expenses. Financial analysts are divided over whether the BOC will hike by 25 or 50 basis points next month.
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