Canadian consumer price inflation was tame in October, registering just 1.2 per cent year-over-year. The Bank of Canada's core inflation index, which excludes the eight most volatile components of the CPI like energy and food, rose 1.3 per cent in October, matching the rate from September. Inflation in BC fell to just 0.5 per cent year-over-year.
Very low core inflation suggests that the Canadian economy is still operating with a substantial amount of excess supply. So, in spite of a clear tightening bias, inflation running near the bottom of the Bank of Canada's target control range suggests that rising interest rates remain far off on the horizon.