Canada’s inflation rate was 6.9% higher in September than a year ago, according to the latest
data from Statistics Canada.
The September inflation reading was higher than the 6.7% that a majority of economists had
forecast, according to Refinitiv data.
On a monthly basis, September inflation rose 0.1% from August compared to expectations for a
0.1% decline.
The hotter than expected inflation data has raised expectations that the Bank of Canada will
continue to raise interest rates aggressively in coming months.
Markets are now pricing in a 60% chance of a 75-basis point rate hike from the Bank of Canada
at its next policy meeting on October 26.
The central bank has already raised borrowing costs by three percentage points this year,
bringing its trendsetting overnight interest rate to 3.25%.
Prices for food continue to rise sharply in Canada and grew 11.4% in September, the fastest
year-over-year increase since August 1981.
Core inflation, which strips out volatile food and energy prices, rose 5.3% in September from a
year ago, equaling August’s increase.
