Canadian inflation came in at a hotter-than-expected rate during the month of September despite lower prices at the pump.
Statistics Canada reported that the consumer price index (CPI) was up 6.9% year-over-year, which was higher than expectations of a 6.7% gain.
During the month of September, prices rose 0.1% instead of the anticipated 0.1% decline.
READ: Canadians worry about inflation, wages and price increases during 3Q 2022 and possible recession
Food prices at the grocery store rose by 11.4%, which is the fastest year-over-year growth since August 1981.
However, annual inflation slowed for a third month, down from 7% in August.
Bay Street is now pricing in a 60% chance of a 75-basis-point increase from the Bank of Canada, BNN Bloomberg reported, which would raise the benchmark overnight lending rate to 4% -- a level it hasn’t reached since 2008.
The Toronto Stock Exchange fell at the open, down around 0.6% at 18,686 points, while the Canadian dollar lost 0.5% against the US dollar to 72.49 cents.
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