Statistics
Canada reported on Wednesday the country’s consumer price index (CPI) rose 0.7
percent m-o-m in October, following a 0.2 percent m-o-m advance in the previous
month. This represented the fastest pace since June 2020.
On
a y-o-y basis, Canada’s inflation rate soared 4.7 percent last month,
accelerating from 4.4 percent in September. This was the highest rate since February
2003.
Economists
had predicted inflation would increase 0.7 percent m-o-m and 4.7 percent y-o-y
in October.
According
to the report, all eight major components of the headline CPI posted gains on a
year-over-year basis in October, led by transportation (+10.1 percent y-o-y,
the most since March 2003), which, in its turn, was driven by a jump in energy prices
(+25.5 percent y-o-y). Excluding energy prices, the CPI rose 3.3 percent y-o-y in
October.
Meanwhile, the closely watched the Bank of
Canada's core index surged 3.8 percent y-o-y in October, following a 3.7
percent y-o-y jump in September. This was the highest reading since February
1990.