Canada inflation exceeds forecast, likely thwarting another big rate cut

The first acceleration of headline inflation in five months will likely bolster a stance for the Bank of Canada to reduce borrowing

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.