Stats Canada says year-over-year prices at the pump increased by 12 per cent, helping push Canada’s inflation for October to 2.4 per cent. That’s up from 2.2 per cent in September. File photo.
Year-over-year price increases to fuel your vehicle and airline tickets helped drive an inflation in October compared to the month before, according to Statistics Canada.
The national inflation rate hit 2.4 per cent last month, up two-tenths from September’s reading.
Stats Canada says the consumer price index in Victoria climbed 3.0 per cent from this point last year from 2.4 per cent in September, on par with inflation last month in B.C.
The higher inflation in Canada was mainly driven by a 12 per cent increase in gas prices year-over-year, a 9.4 per cent hike in air transportation and mortgage interest costs increased by 7.0 per cent.
Analysts predicted Friday inflation will likely lose momentum as data begins to show the impact of a recent sharp decline in oil prices.
Although the overall inflation reading is above the Bank of Canada’s ideal target of two per cent, Stats Canada’s three core inflation readings, which removes more-volatile factors like gas prices, came in slightly over that mark last month.
It is core inflation that the central bank pays close attention to ahead of interest-rate decisions, which it can raise as a way to keep inflation from rising too high.
But market analysts predict Bank of Canada governor Stephen Poloz will wait until January before announcing another interest rate increase, but the next decision scheduled Dec. 5.
Compared to a year earlier, Stats Canada report price drops of 7.2 per cent for video equipment, 4.0 per cent for telephone services and 3.9 per cent for traveller accommodation.
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