FX.co ★ Canada Inflation Rate Eases

The headline inflation rate in Canada decreased to 2.2% in October 2025, down from 2.4% in September. This trajectory aligns moderately with the Bank of Canada's projections, anticipating a near-term approach to the 2% target. Gasoline prices experienced a significant drop, falling by 9.4% compared to the previous year, an increase from the 4.1% reduction noted last month, attributed to ongoing perceptions of an oversupplied global crude oil market affecting sector prices. Consequently, transportation inflation decelerated to 0.7% from 1.7%. Additionally, food prices saw a reduction in growth, rising by 3.4% as opposed to 3.8% in September, largely due to a slowdown in food preparation price increases to 3.2%. Shelter-related inflation also lessened slightly to 2.5% from 2.6%. Conversely, the cost of cellular services surged by 7.7%, marking their first rise in over two years following price increases by key wireless providers. Inflation rates also increased for mortgage insurance by 6.8% and car insurance by 7.3%. Meanwhile, the trimmed-mean core inflation rate, a key metric monitored by the Bank of Canada, edged down to 3%.