Traders Trim Big Canada Rate Cut Bets After Inflation Uptick
- Headline inflation rose to 2% y/y, core measures reaccelerated
- Data may bolster case for central bank to gradually cut rates
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Inflation in Canada rose by more than forecast and underlying price pressures reaccelerated, hiccups that may dissuade policymakers from a second straight 50 basis-point cut to interest rates next month.
The consumer price index rose 2% in October on a yearly basis, up from a 1.6% increase a month earlier, Statistics Canada reported Tuesday in Ottawa. That’s slightly faster than the median estimate of 1.9% in a Bloomberg survey of economists.