Statistics Canada is expected to release its October Consumer Price Index report this morning.

Economists polled by Reuters expected the annual rate of inflation to have risen to 1.9 percent last month, according to LSEG Data & Analytics.

After a period of sharp price increases, Canada’s inflation rate fell below the Bank of Canada’s 2 percent target in September for the first time in more than three years, hitting 1.6 percent.

The central bank reduced an interest rate cut by half a percentage point last month in response to inflation falling to 1.6%.

It is expected to continue cutting interest rates, including at its meeting next month.

Governor Tiff Macklem said the size and pace of cuts, however, will be determined by incoming economic data.

This report by The Canadian Press was first published on November 19, 2024.