The consumer price index rose 1.6 per cent in September from a year earlier, the smallest increase since February 2021, Statistics Canada reported. A big decline in gasoline prices was the primary contributor. “Core” measures that exclude volatile prices hovered slightly above the Bank of Canada’s target of two per cent. (The Logic)

Talking point: Cooler inflation will stoke debate over whether the Bank of Canada will accelerate the pace of rate cuts at next week’s policy announcement. Price pressures are hotter than the headline implies. The central bank’s two preferred measures of core inflation averaged 2.35 per cent, the same as in August, as food and health and personal care costs increased. Shelter and services prices remained elevated, but the pace of increase slowed, a condition for further rate cuts. The price of goods decreased for a second consecutive month, adding to evidence the economy is struggling and in need of a boost.