According to Jinshi data reports, data released on Tuesday showed that due to the decline in gasoline prices being lower than last month, Canada's annualized inflation rate accelerated to 2.0% in October, exceeding expectations. This may reduce the possibility of the Bank of Canada making a significant rate cut again in December.
Although this is the first increase in the annualized inflation rate since June, this rise is generally in line with the central bank's forecasts. In recent months, falling energy prices have led to a faster-than-expected slowdown in overall inflation, and now the inflation rate has risen back to 2%.
The current currency market expects a probability of about 60% for at least a 25 basis point rate cut in December.
