Inflation eased to 3.1 percent amid lower gasoline prices

In its recent announcement, Statistics Canada has reported a decrease in the annual inflation rate to 3.1 percent in October, compared to the 3.8 percent rate in September. This reduction is attributed partially to a decline in gasoline prices, which have dropped by 6.4 percent compared to the previous month, influenced by the use of more cost-effective components in winter gasoline.
Furthermore, the inflation rate for food items has also seen a decline for the fourth consecutive month, reaching 5.4 percent in October. Although this figure remains relatively high, it represents a decrease from the 5.8 percent recorded in the previous month.
However, housing costs, particularly rental expenses and mortgage interest, continue to rise. The latest inflation data will be used by the Bank of Canada to make its final decision on the interest rate announcement scheduled for December 6.
The Bank of Canada has set its target range for inflation between one and three percent, but analysts believe that the central bank will not be satisfied until it reaches the two percent target.
In its most recent decision, the central bank opted to maintain the interest rate at five percent but stated that it may consider raising the interest rate again if necessary.
Analysts predict that the inflation report for October, along with other factors, should be sufficient for the central bank to keep the interest rate steady in December. A potential decrease in the interest rate may begin in the second quarter of the next year.

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