Canada Inflation Expectations Hold Steady Amid Energy Price Pressure

A preview of Canada's September Consumer Price Index (CPI) data suggests that inflation will remain steady at 3.0% year-over-year, despite upward pressure on energy costs.

The Continuum Economics report notes that Canadian gasoline prices increased in September, but the rise was modest and simply reversed a decline seen in August.

According to the report, seasonally adjusted CPI is expected to increase by 0.3% in September, up from 0.2% in August, with the ex food and energy rate rising by 0.2%.

The underlying inflationary pressures are not believed to be trending at 0.3% per month, as evidenced by four straight months of gains below 0.3%