Canada's annual inflation rate rose to 3.1 per cent in September as gasoline prices jumped 27.8 per cent amid the Middle East war, but came in slightly below the 3.2 per cent economists had expected. Excluding gasoline, consumer prices rose 2.2 per cent, after 2.4 per cent in August. Core measures, CPI-trim at 1.8 per cent and CPI-median at 1.9 per cent, suggest underlying price pressures remain relatively contained and higher energy costs have yet to spread widely. Bank of Canada Governor Tiff Macklem warned the bank was prepared to raise rates if necessary, while CIBC's Andrew Grantham said the data suggests policymakers have little rush to do so. Regional gaps were wide, with Ontario lowest at 2.5 per cent and all three Maritime provinces well above the national rate as heating oil prices surged.
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