OTTAWA: Economists are forecasting an increase in Canada’s inflation rate for September, primarily driven by the recent surge in fuel prices. This prediction comes as Statistics Canada prepares to release the inflation data for the previous month on Tuesday, marking the final major economic release ahead of the Bank of Canada’s (BoC) next interest rate decision at the end of October.
Annual inflation stood at 1.9% in August. However, economic analysts surveyed by LSEG Data & Analytics currently expect the annual inflation rate for September to climb to 2.2%.
The forecast is even higher from some corners. Stephen Brown, Deputy Chief at Capital Economics, anticipates the annual inflation rate could rise as high as 2.4%. Similarly, Benjamin Reitzes, Macro Strategist at BMO Capital Markets, projects inflation will increase to 2.2%, attributing the jump specifically to the month-over-month increase observed in gasoline prices during September.
The data released on Tuesday will be crucial for the Bank of Canada as it assesses economic conditions leading up to its interest rate announcement scheduled for October 29.
