By Ketki Saxena
Investing.com -- Statistics Canada reported today that Canadian inflation fell to 6.8% in October, slightly ahead of economist expectations of a 6.7% increase.
On a monthly basis, CPI rose 0.1% compared to a 0.7% gain in October.
Inflation was moderated largely by falling gasoline prices, which were down 3.6 % during the month. Gasoline prices still remain up 13.7 % compared to a year ago.
Grocery bills meanwhile continued to rise, increasing at an 11.4% annual pace, up from the 11% increase seen in October.
Shelter costs meanwhile rose 7.2% in the past year, driven by higher mortgage interest costs (+14.5% YoY) and rent (+5.9% YoY)
While inflation moderated, core inflation measures that strip out volatile food and gasoline prices- a key metric that the Bank of Canada will be watching - increased in November. Excluding food and energy, prices were up 5.4 % on a yearly basis.
The Bank of Canada has raised rates 7 times so far this year in order to cool inflation, taking its benchmark policy rate from 0.25% in March to its current level of 4.25%.
Economists expect another 0.25% rate hike from the BoC in January, as core inflation continues to prove sticky.