Higher oil prices drove the headline increase, confirming warnings from Bank of Canada Governor Tiff Macklem on Oct. 17 that energy costs would pressure the inflation outlook. Despite the surge in energy, underlying price pressures continued to ease, with the central bank's preferred core inflation measures averaging 1.85%, the lowest reading in six years.
Tuesday, October 20, 2026
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Canada Rate Hike Odds Fall to 68% After Core Inflation Hits 6 Year Low
Global Markets1 day ago
Annual inflation in Canada climbed to 3.1% in September, coming in below the 3.2% market forecast. Following the data, swap market participants reduced the probability of a Bank of Canada interest rate hike in October to 68% from 74%. The monthly Consumer Price Index grew 0.1% during the same period, also trailing expectations.
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