Inflation & Prices

Inflation in Canada Reverses Just in Time for Central Bank

  • ‘There’s no need for further rate hikes in Canada’: Reitzes
  • Core measures tracked closely by central bank are easing

Shoppers at a grocery store in Toronto, Ontario.

Photographer: Cole Burston/Bloomberg
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Canadian inflation is decelerating again, leaving room for the central bank to hold interest rates steady next week.

The consumer price index rose 3.8% in September from a year ago, Statistics Canada reported Tuesday in Ottawa, slower than the median estimate of 4% in a Bloomberg survey of economists. It’s a reversal that comes at the right time for Bank of Canada policymakers, who will soon begin their deliberations for a rate decision on Oct. 25.