Canadian Inflation Tumbles, Raising Odds on Larger Rate Cuts
Canadian headline inflation decelerated by more than expected last month, lowering the hurdle to an outsized rate cut at next week’s Bank of Canada meeting. Data released by Statistics Canada this morning showed the Consumer Price Index decelerating to 1.6 percent on a year-over-year basis in September, down from the 2-percent increase recorded in August and well below consensus expectations that had been set closer to 1.8 percent. On a month-over-month basis, prices fell -0.4 percent. Excluding shelter costs, prices rose just 0.4 percent relative to a year prior. Underlying pressures remained sticky: core inflation, computed as the average of...