According to the report from Zhitong Finance and Economics APP, based on the data released by the Statistics Canada on Tuesday, Canada's annual inflation rate in October rose to 2%, partially due to the base effect of rbob gasoline prices. In comparison, the Consumer Price Index (CPI) for September increased at an annual rate of 1.6%.

The core inflation index closely monitored by the Bank of Canada also slightly accelerated in October, with the median value of CPI rising from 2.1% in September to 2.2%.

CIBC economist Katherine Judge stated in the announcement on Tuesday: "Given the series of good inflation news in this report, and the need to observe GDP and employment data before the December central bank decision, we believe it is still possible to cut interest rates by 50 basis points at the next meeting." Currently, the probability in the currency market of at least a 25 basis point rate cut in December is around 60%.

The Bank of Canada plans to announce its latest interest rate decision on December 11. Last month, Bank of Canada Governor Tiff Macklem stated: "Canadians can breathe a sigh of relief, no need to worry about significant changes in living costs."

According to data from LSEG Data & Analytics, economists surveyed by foreign media had previously expected the annual inflation rate for October to rise to 1.9%.

In terms of monthly changes, the CPI rose by 0.4% in October on a month-on-month basis, and by 0.3% after seasonal adjustment. The Statistics Canada indicated that the price increases in each province in October were faster compared to September.

The decrease in rbob gasoline prices has reduced.

In October, gasoline prices decreased by 4.0% year-on-year, lower than 10.7% in September. The Federal Statistics Office explained: 'Part of the decrease in the rate is attributed to the base effect, with gasoline prices in October 2023 decreasing by 6.4% month-on-month, mainly due to a drop in refining margins and weak global oil consumer.'

Food prices have risen faster than the overall price level.

Data shows that supermarket food prices accelerated year-on-year growth in October, rising from 2.4% in September to 2.7%. Among them, the year-on-year growth rate of fresh vegetable prices has accelerated, while the growth rate of fresh frozen beef prices has slowed down.

The Statistics Office stated: 'This marks the third consecutive month of grocery price increases exceeding the overall inflation rate.'

Rent prices remain high.

Despite the slowdown in the rate of increase, rent rose by 7.3% year-on-year in October, lower than 8.2% in September. Nova Scotia and Manitoba provinces saw the smallest rent increases. 'Although the pace of increase is slowing down, rent prices remain high,' the Statistics Office pointed out. 'Compared to October 2021, rent prices have risen by 21.6%.'

Data shows that since September 2023, the year-on-year growth rate of mortgage interest rates has started to slow down, peaking in August.

The year-on-year price growth rate of overall housing categories (including items from rent to home maintenance, etc.) decreased from 5% in September to 4.8% in October.