The Financial Post reports in its Wednesday edition that the path of inflation may have hit a detour in October with economists predicting the pace of price growth will remain unchanged or even bump higher, despite aggressive rate hikes working their way through the economy. The Post's Stephanie Hughes writes that leading up to Statistics Canada's inflation data, many economists have been making calls that the consumer price index will edge back up over the 7-per-cent mark from its latest read of 6.9 per cent in September. The Bank of Canada has hiked its policy rate by 3.5 percentage points since March, from near zero to 3.75 per cent by late October. Since then, the inflation rate that hit a peak of 8.1 per cent in June has cooled, but core inflation remained stubbornly high in September. Excluding food and energy, inflation rose 5.4 per cent from a year earlier, up from 5.3 per cent the month before. CIBC's chief economist Avery Shenfeld said disinflation calls were premature. "In Canada, we're going to see a detour from the path towards slower inflation, as a bump in gasoline prices pushes the headline rate higher this month, and possibly for one more month ahead," Mr. Shenfeld said in a note on to clients.
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