Inflation rate in October outpaces economic forecasts
Canadian inflation rate roared back to life last month, as broad gains in gasoline, electricity and postal services pushed consumer price increases to the fastest clip in two years.
Consumer prices rose 2.4 per cent from a year earlier, Statistics Canada said Tuesday, topping all economists’ forecasts. Less volatile core prices, which the Bank of Canada uses to discern future inflation trends, quickened to 1.8 per cent in October from 1.5 per cent in September.
Some inflationary pressures loom on the horizon. Major supermarkets will feel the heat by next year to pass on wholesale food price increases as companies are squeezed by dramatic jumps in the price of wheat, sugar and other commodities.
Already food suppliers say they will discuss wholesale price increases with retailers. “The price of wheat is going up through the roof, and there will be big additions in terms of price increases over the next 12 months,” W. Galen Weston, chairman of Toronto-based giant George Weston Ltd., said on Tuesday.
By next year “hopefully we will be able – and the market will be able – to pass them on to the consumer,” Mr. La Fleche said.