Canadian inflation rises to 3.1%
Monthly consumer prices increased 0.1%, compared with a 0.1% decline in the previous month.
Energy prices rose 19% year-on-year, while gasoline prices jumped 27.8%.
The return of headline inflation above 3% increases pressure on the Bank of Canada. However, trimmed-mean inflation stood at 1.8% and median inflation at 1.9%, suggesting that price pressures remain relatively contained outside energy.
Following the release, the Canadian dollar strengthened 0.29% against the US dollar, while the two-year government bond yield rose 7.7 basis points to 2.545%. Markets expect the central bank to maintain its 2.25% policy rate on October 28.
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