Looks like Canadians had to shell out more money to buy goods and services last month, as the country's inflation rate jumped to two per cent in October.
According to Statistics Canada, the Consumer Price Index rose to two per cent on a year-over-year basis last month, compared to the 1.6 per cent recorded in September.
The Consumer Price Index represents changes in prices as experienced by Canadian consumers, the agency said.
“Canada's annual inflation rate rose more than expected — to two per cent in October,” Reuters.com reported. “It was the first pickup in the annual inflation rate since May, but was largely in line with expectations of the Bank of Canada, which predicted last month that October's figure would rise back to two per cent.”
The Consumer Price Index looks at items like food, shelter, clothing, transportation, health and personal care.
“This was the third consecutive month price growth for groceries outpaced headline inflation,” Statistics Canada said. “Notable contributors to the acceleration were higher prices for other fresh vegetables and preserved fruit and fruit preparations.”
Gasoline and shelter costs did see a slower pace of growth from September to October, which reflects the decrease of mortgage interest costs and weaker global oil consumption.
Following this inflation announcement, all eyes will be turning toward the Bank of Canada, with its final interest rate announcement of 2024 coming Dec. 11.
The bank uses the inflation rate as a factor in whether it raises or lowers the key overnight lending rate, which currently sits at 3.75 per cent.
The bank’s overnight lending rate is used by mortgage and loan companies to compose fixed and variable interest rate levels.
To learn more about the Consumer Price Index and the inflation rate, visit www150.statcan.gc.ca.
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