In September, Canada’s annual inflation rate inched down to 6.9 per cent, as lower prices at the gas pump offset another 41-year high in food costs. As per Statistics Canada’s data, this marks the third consecutive monthly deceleration.

The headline inflation number was ahead of analyst forecasts of 6.8 per cent but down from 7.0 per cent in August. Excluding energy and food, prices surged 5.4 per cent from a rise of 5.3 per cent in August.

Money market bets on a 75-basis-point hike at the central bank’s October 26 decision increased after the inflation data, with the policy rate peaking between 4.25 per cent and 4.50 per cent early next year. It now stands at 3.25 per cent.

On the month, Canada’s consumer price index surged 0.1 per cent, ahead of forecasts that it would remain flat. The Canadian dollar was trading 0.2 per cent lower at 1.3760 to the dollar or 72.67 US cents.