Inflation in Canada rose by more than forecast and underlying price pressures reaccelerated, hiccups that may dissuade policymakers from a second straight 50 basis-point cut to interest rates next month.

The Consumer Price Index — a broad-based measure of inflation — was 2.0 per cent higher than it was a year ago, up from 1.6 per cent in September. That puts it bang-on the Bank of Canada’s inflation target, but was higher than most economists had expected.

Canada’s inflation rate rose to two per cent last month, up from 1.6 per cent in September, as gasoline prices exerted less downward pressure on annual price growth. The report from Statistics Canada on Tuesday says prices in October increased at a faster annual pace in five out of the eight major components of the consumer price index.

Canada's annual inflation rate accelerated more than expected to 2.0% in October as gas prices fell less than the previous month, data showed on Tuesday, likely diluting chances of another large rate cut in December.

Canada’s annual inflation rate rose to two per cent in October, up from 1.6 per cent the month before, Statistics Canada said Tuesday. More to come … Inflation for September eases to 1.6% U.S. inflati

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