The surprise of the day was a rise in Canada’s annual inflation rate to 2.4 per cent in October (up 0.1 per cent from September and beating the BoC inflation target of 2 per cent). Despite gasoline prices falling by 4 per cent, other costs have been edging higher, especially clothing, alcohol, tobacco and meat. In fact Statistics Canada said that 7 of the 8 major parts of the Consumer Price Index were higher in October than September while all 8 markers were higher than the same time last year. Analysts had expected the annual rate to be only slightly up and for the monthly rate to be down; they also predicted the core rate would stay level but that was up by 0.2 per cent over the month.
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