Market Wire: Canadian Inflation Surprises, Lifting Rate Expectations
Canadian inflation slowed by less than expected in September, raising the odds on a 75 basis point move at next week’s Bank of Canada meeting. Data released by Statistics Canada this morning showed consumer prices rising 6.9 percent year-over-year in September, with the month-over-month increase amounting to 0.1 percent, beating expectations for a -0.1 percent decline. Annual inflation peaked at 7.6 percent in July, and fell to 7 percent in August. Core inflation, computed as the average of the three price measures preferred by the Bank of Canada (trim, median, and common), increased an annualized 5.3 percent – roughly unchanged...