Signage marks the Statistics Canada offices in Ottawa on July 21, 2010. Statistics Canada is expected to publish its latest reading for inflation today.Photo by Sean Kilpatrick/THE CANADIAN PRESS

Annual inflation falls to 1.6% in September, raises odds of 50-basis-point rate cut

Bank of Canada favours slow and gradual pace of 25-basis-point cuts each time

by · National Post

The chances of a half-percentage point interest rate cut by the Bank of Canada became more likely Tuesday after Statistics Canada reported the annual inflation rate fell to 1.6 per cent in September.

Economist Tu Nguyen of accounting and consultancy firm RSM Canada said she had expected the inflation rate to remain close to the central bank’s two per cent target, where it was in August, for a few more months.

Opinion: Blame poor government choices for high food costs, not 'greedflation'By Michel Kelly Gagnon and Gerard LucyshynMichel Kelly Gagnon and Gerard Lucyshyn, Special to National Post, 14 Oct 2024Canada’s inflation rate hits 2 per cent, lowest in more than three yearsOTTAWA — Canada’s inflation rate fell to two per cent last month, finally hitting the Bank of Canada’s target after a tumultuous battle with skyrocketing price growth. The annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.Nojoud Al Mallees, 17 Sep 2024