Canadian inflation rose to 2.4% in September, driven by rising food prices and a smaller decline in gasoline prices than the previous month.
The data will be an important guide ahead of the Bank of Canada meeting on October 29, where the market is pricing in an 86% probability of a 25 basis point interest rate cut to 2.25%.
Monthly CPI rose 0.1% after a 0.1% decline in August, while core inflation remained elevated while CPI-median held steady at 3.2% and CPI-trim rose to 3.1%.
Most items in the CPI basket recorded increases of more than 3%, suggesting that price pressures remain broad-based even as headline inflation remains subdued.
Food and rent prices continued to be the main contributors, with food inflation surging to its highest level since April 2024 and housing inflation hitting 2.6%.
