OTTAWA: Canada’s inflation rate was the same in October as the previous month, as higher gasoline costs were offset by prices for groceries rising at a slower pace, the national statistical agency said Wednesday.
Canadians paid 6.9 percent more for goods and services in October, compared to a year earlier, beating analyst expectations.
Desjardins analyst Royce Mendes said that with core inflation “a tick faster than their pace in September” and most consumer price index categories up more than five percent, the Bank of Canada is likely to continue increasing its key lending rate.
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“The mixed data on inflation leaves us still forecasting a 25 basis point rate hike in December,” he said in a research note.
According to Statistics Canada, gasoline got more expensive in October as OPEC signaled looming production cuts and the Canadian dollar weakened. So too did owning a home, as Canadians renewed their mortgages at higher rates.
Meat, fruit, and vegetable prices also continued to rise, but less than in previous months.
Meanwhile, costs fell for telephone services, video equipment, computer devices, and digital media.
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