Canadian inflation slowed to an annualized 3.8% in September, marking the end of a two-month surge in price pressures across sectors such as travel services, durable goods, and groceries, according to the Bank of Canada's Business Outlook Survey and Consumer Expectations report published on Tuesday. This deceleration follows a June peak of 8.1%, but consumers continue to express concern due to sustained high inflation.
Prices of durable goods saw a decrease, in stark contrast to a 7.5% rise in gas prices, which was influenced by global oil supplies. Inflation rates also varied across provinces, highlighting regional economic differences.
The central bank's aggressive rate-hiking cycle may have reached its conclusion, providing an opportunity for Governor Tiff Macklem to maintain the current benchmark rate at the upcoming decision on October 25, suggested Royce Mendes of Desjardins Capital Markets earlier this week. Despite the easing inflation, consumer apprehension remains due to the persistence of high inflation rates.
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