OTTAWA – Canada’s annual inflation rate accelerated to a new 18-year high in September, driven by transportation, housing and food prices, data showed Wednesday, putting pressure on the Bank of Canada. ahead of a rate decision next week.
Inflation rose to 4.4% in September, beating the average analyst estimate of 4.3%, to reach its fastest level since February 2003, according to Statistics Canada data.
The common CPI, which the Bank of Canada calls the best indicator of the economy’s poor performance, was flat at 1.8%, while the other two core inflation measures posted gains.
The Bank of Canada expects headline inflation to remain above its control range of 1% to 3% this year. Governor Tiff Macklem warned last week that supply chain bottlenecks mean it will likely take a little longer than expected for inflation to come down.
The loonie trimmed gains after the data, touching 1.2349 to the dollar, or 80.98 cents on the dollar.