According to data released on Tuesday, Canada's annual inflation rate slowed to 1.6% in September, exceeding expectations, mainly due to falling gasoline prices, but potential price pressure indicators remained stable. The overall slowdown in inflation was mainly due to a 10.7% drop in gasoline prices. According to the statistics agency, this is the fastest drop in gasoline prices since July 2023, due to growing concerns about a slowdown in economic growth, falling crude oil prices, and lower costs of winter blends. Weak energy prices over the past two months have caused overall inflation to slow to the Bank of Canada's 2% target, which is faster than expected by the central bank. Coupled with weak economic growth expectations for the third quarter, this raised the possibility of cutting interest rates by 50 basis points.

According to data released on Tuesday, Canada's annual inflation rate slowed to 1.6% in September, exceeding expectations, mainly due to falling gasoline prices, but potential price pressure indicators remained stable. The overall slowdown in inflation was mainly due to a 10.7% drop in gasoline prices. According to the statistics agency, this is the fastest drop in gasoline prices since July 2023, due to growing concerns about a slowdown in economic growth, falling crude oil prices, and lower costs of winter blends. Weak energy prices over the past two months have caused overall inflation to slow to the Bank of Canada's 2% target, which is faster than expected by the central bank. Coupled with weak economic growth expectations for the third quarter, this raised the possibility of cutting interest rates by 50 basis points.