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Economic News

Canada: Inflation still not cooperating with the Bank of Canada

October 19, 2022

The respite from rising prices was brief in Canada. After declining in August, the headline consumer price index increased 0.1% in September, leaving the annual rate of inflation at 6.9%. The persistence of inflation means that the Bank of Canada’s job isn’t done yet. The Bank of Canada’s most recent consumer survey showed accelerating short-term inflation expectations, which is keeping policymakers concerned, even though long-term inflation expectations remain relatively anchored. As a result, expect a rate hike of at least 75bp next week.