Economists expect annual inflation rate fell in October, driven by lower gas prices

Economists expect October’s annual inflation reading will show an easing from September as lower gasoline prices helped offset increases elsewhere.

Forecasters at RBC and Desjardins say they think the annual inflation rate for October will come in at 2.1 per cent, down from 2.4 per cent the month prior.

RBC says the decline is expected in part because gasoline prices were down five per cent in October, while food price inflation should remain around 3.8 per cent.

Nathan Janzen, assistant chief economist at RBC, says inflation numbers are being tamped down by the removal of the carbon tax earlier this year, but are still showing upward pressure.

He says robust consumer spending has helped bolster inflation, despite rising unemployment.

Desjardins says the removal of retaliatory tariffs