Canada’s inflation rate stood at an annualized 6.9% in October, unchanged from the previous month, as gasoline prices surged nearly 10% across the country.
Statistics Canada said the Consumer Price Index (CPI) held steady in October from a year earlier as costs for energy products and other categories climbed higher during the month.
The annual increase matched the expectations of economists. On a month-over-month basis, inflation in Canada gained 0.7% during October, slightly lower than the 0.8% forecast of economists.
Pushing inflation higher in October were prices for gas at the pumps, which increased 9.2% during the month. Lower prices for natural gas and groceries helped to offset the rise in gasoline costs.
Two inflation measures that are closely watched by economists, the “trim” and “median core” inflation rates, moved higher in October, averaging 5.05% from 4.95% respectively.
The latest inflation data shows that the economy remains overheated and is likely to prompt the Bank of Canada to continue raising interest rates, said economists.
Bank of Canada Governor Tiff Macklem has said that interest rates are likely to continue rising in coming months.
The Canadian dollar fell slightly after the latest inflation data was released but recovered to finish the trading session at $1.3241 per U.S. dollar.
