Canada CPI hits 3.1% in September, missing forecasts as core cools
As seen on the 24/7 Wall St. homepage on October 19, 2026.
The 3.1% headline is an oil story, missing expectations with core measures cooling, which keeps a Bank of Canada cut in play despite Macklem's warnings on energy. Loonie and Canadian rates traders get their cue here.
CANADA INFLATION RISES TO 3.1%, BUT CORE PRESSURES EASE Canada's annual inflation accelerated to 3.1% in September, below the 3.2% forecast, as higher oil prices pushed energy costs up. Monthly CPI rose 0.1%, also below expectations. Meanwhile, the Bank of Canada's preferred
- Replies18
- Reposts10
- Likes101
Continue ReadingShow less
Canada's annual inflation came in at 3.1% for September, missing expectations, with oil-driven energy costs doing most of the work behind the headline number.
An oil-driven move in headline inflation is transitory in the eyes of rate-setters, and the easing in core pressures gives the Bank of Canada room to maneuver.
The Bank of Canada's preferred core measures, which strip out volatile components, showed signs of cooling, shifting the policy calculus for Loonie traders and Canadian rates markets.
A rate cut remains in play even after Governor Macklem's warnings about energy prices keeping inflation elevated.