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 rose 2% in October on a yearly basis, up from a 1.6% increase a month earlier, Statistics Canada reported Tuesday in Ottawa. That’s slightly faster than the median estimate of 1.9% in a Bloomberg survey of economists.

The first acceleration of headline inflation in five months will likely bolster a stance for the Bank of Canada to reduce borrowing{ai:summary}<p>Inflation in Canada increased to 2% in October, up from 1.6% the previous month, surpassing forecasts. This rise in the consumer price index may lead policymakers to reconsider a second consecutive 50 basis-point cut to interest rates next month.</p><p>#economy</p>

Canada inflation exceeds forecast, likely thwarting another big rate cut

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