Canada Inflation Research Brief

Pricing report delivered mixed but reassuring signal. The change in headline CPI eased 20 basis points to 2.2 per cent in October, driven by sharp declines in energy prices, alongside continued softness in clothing and footwear. Shelter costs were the outlier, with property tax updates and another firm monthly rent increase pushing the category higher. Still, the broader inflation pulse cooled. CPI-trim and CPI-median rose by an average of just 0.18 per cent, the closest they have been to the Bank’s target-consistent pace in more than a year.