OTTAWA — Statistics Canada says its consumer price index in September was up 0.5 per cent compared with a year ago.
The reading compared with an year-over-year increase of 0.1 per cent in August.
Economists on average had expected a year-over-year increase of 0.4 per cent, according to financial data firm Refinitiv.
This is a breaking news update. Our earlier story follows…
Statistics Canada will say Wednesday morning how much prices went up or down in September, with expectations for near-zero movement.
The agency reported last month that the inflation-measuring consumer price index rose 0.1 per cent in August compared with a year ago, matching the 0.1 per cent year-over-year increase recorded in July.
Experts anticipate a slightly higher reading for September.
Financial data firm Refinitiv says the average economist estimate is for an annualized inflation rate of 0.4 per cent in September, though it would be a monthly decline of 0.1 per cent from August.
The Bank of Canada intends to keep its key policy interest rate at 0.25 per cent, which is as low as it will go, until inflation is back at the central bank’s two per cent target.
The hope is that by keeping its rate low, the central bank can drive down rates on mortgages and loans to make it easier for people to borrow and spend to aid the economy as it recuperates from the COVID-19 crisis.
This report by The Canadian Press was first published Oct. 21, 2020.
