Canada's annual inflation rate in October sped up to 2.3 percent from 1.8 percent in September mainly on a sharp spike in gasoline prices, Statistics Canada said on Tuesday. The Bank of Canada's core inflation rate, which strips out energy and some food, showed the annual core rate slowed slightly to 1.4 percent from 1.5 percent in September, Statscan said.
Analysts had forecast, on average, an annual rate of 2.3 percent but expected the core rate to remain unchanged from September.
The central bank last month raised rates for the second time in as many months to keep the economy in check. The overnight interest rate is now 2.50 percent and the next rate announcement is on December 7.
Bank of Canada Governor David Dodge on Monday told reporters in Berlin that the economy is operating near to full capacity and that "at least over time that means we are going to need to withdraw monetary stimulus".