Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
Latest Breaking News
Editorials & Other Articles
General Discussion
The DU Lounge
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Canada's inflation rate jumps back to 2%, curbing large rate-cut bets
Canada's inflation rate jumps back to 2%, curbing large rate-cut bets
By Promit Mukherjee and Ismail Shakil
November 19, 2024 10:26 AM EST • Updated 7 days ago
Summary
• Monthly CPI up 0.4% after two consecutive months of decline
• BoC's core measures CPI-median and CPI-trim also edge up
• Money markets see 26% chance of a 50bps rate cut on Dec. 11
OTTAWA, Nov 19 (Reuters) - Canada's annual inflation rate rose more than expected to 2.0% in October as gas prices fell less than the previous month, data showed on Tuesday, causing markets to scale back bets on a big rate cut next month. ... It was the first pick-up 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 2%.
Analysts polled by Reuters had forecast the inflation rate would speed up to 1.9% from 1.6% in September. In August, the annual rate was 2%. ... On a monthly basis, the consumer price index rose by 0.4% after two consecutive monthly declines, Statistics Canada data showed. The monthly gain also beat market expectations of a 0.3% increase. ... "The prudent course of action would be a 25-basis-point cut and I think this report somewhat strengthens that view," said Doug Porter, chief economist at BMO Capital Markets.
{snip}
By Promit Mukherjee and Ismail Shakil
November 19, 2024 10:26 AM EST • Updated 7 days ago
Summary
• Monthly CPI up 0.4% after two consecutive months of decline
• BoC's core measures CPI-median and CPI-trim also edge up
• Money markets see 26% chance of a 50bps rate cut on Dec. 11
OTTAWA, Nov 19 (Reuters) - Canada's annual inflation rate rose more than expected to 2.0% in October as gas prices fell less than the previous month, data showed on Tuesday, causing markets to scale back bets on a big rate cut next month. ... It was the first pick-up 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 2%.
Analysts polled by Reuters had forecast the inflation rate would speed up to 1.9% from 1.6% in September. In August, the annual rate was 2%. ... On a monthly basis, the consumer price index rose by 0.4% after two consecutive monthly declines, Statistics Canada data showed. The monthly gain also beat market expectations of a 0.3% increase. ... "The prudent course of action would be a 25-basis-point cut and I think this report somewhat strengthens that view," said Doug Porter, chief economist at BMO Capital Markets.
{snip}