High Interest Rates Expected to Slow Inflation in October, According to Economists
Forecasters anticipate Canada’s inflation rate took another dip in October as gasoline prices fell from the previous month and grocery prices rise more slowly.
Statistics Canada is set to release its consumer price index report on Nov. 21, coinciding with the federal government’s fall economic statement.
BMO expects the annual rate to come in at 3.2 percent for October, while RBC is forecasting the rate fell to 3.1 percent.
Canada’s inflation rate came in at 3.8 percent in September.
A further slowdown would be welcome news for the Bank of Canada as it looks for evidence of a sustained slowdown in consumer price growth.
The central bank opted to hold its key interest rate steady at five percent at its last two decision meetings, largely due to recent weak economic data.
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