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Canada’s Inflation Rate Rises To 2% In October

Canada’s annual inflation rate rose to 2% in October, up from 1.6% in September, as the decline in gasoline prices moderated, Statistics Canada reported on Tuesday. The increase brings inflation back to the Bank of Canada’s target rate, potentially influencing future monetary policy decisions.

On a monthly basis, the CPI increased 0.4% in October, reversing a 0.4% decline in September. Seasonally adjusted, the monthly increase was 0.3%.

The all-items Consumer Price Index excluding gasoline remained steady at 2.2% for the third consecutive month. Gasoline prices fell 4% year-over-year in October, compared to a 10.7% drop in September, contributing significantly to the overall inflation uptick.

You can read more on the matter here.

What’s going on?

• Canada’s Inflation Rate Rises To 2% In October (theDeepDive)

• Security of Canadian water treatment plants called into question as cyberattack threats mount (Globe)

• Oil Titans Backtrack on Renewable Energy Ambitions To Address Profitability Concerns (theDeepDive)

• Ukraine strikes Russia with US-made long-range missiles for first time (FT)

• Pennsylvania May Become First US State to Hold Bitcoin (theDeepDive)

• Mortgage brokers expect more competition as buyers re-enter housing market (BNN)

• Job Market Is Turning Chilly for Recent US College Graduates (Bloomberg)

• Polish Central Bank Continues Gold-Buying Spree, Ups Holdings to 420 Tons (theDeepDive)

• Donald Trump Jr. Goes All-In on the Anti-Woke Economy (WSJ)

• Russia Stops Gas Flow to Austria in Payment Dispute (theDeepDive)

• EU to demand technology transfers from Chinese companies (FT)

• Beijing Gears Up for Trade War as Trump’s Hardline Team Takes Shape (theDeepDive)

• One in five newcomers leave Canada within 25 years, report finds (Globe)

What’s the latest?

• Russia vs Ukraine: Ukraine reportedly used U.S.-made ATACMS missiles to strike a Russian military facility in Bryansk, with Russia confirming five out of six missiles were intercepted. Following this, President Putin updated Russia's nuclear doctrine to include responses to aggression supported by nuclear powers. Moscow unveiled mobile bomb shelters, signaling nuclear readiness while warning the West against further escalation. Analysts suggest Russia may resort to asymmetric warfare rather than direct nuclear confrontation.

• Bitcoin: Bitcoin rose less than 1% to $92,003.28, nearing its all-time high of $93,469.08, amid heightened geopolitical tensions between Ukraine and Russia. The cryptocurrency's gains contrasted with declines in other assets like Ether and Coinbase shares. Bitcoin is increasingly viewed as a hedge against uncertainty, with analysts noting its long-term correlation with money supply growth and its negative correlation with the U.S. dollar. However, skeptics like Citigroup question its store-of-value properties due to its volatility.

• TC Energy: TC Energy Corp. announced $1.5 billion in capital spending for four new projects, including two U.S. gas projects—Pulaski and Maysville—each costing $400M and set for 2029 completion under 20-year contracts. The company also approved a $300M Southeast Virginia Energy Storage Project (2030 target) and $175M for an Ontario Bruce Power expansion. This follows TC Energy's recent spinoff of its crude oil pipelines business, South Bow Corp.

• Inflation:Canada's annual inflation rose to 2% in October, up from 1.6% in September, as gasoline prices fell less sharply (-4% vs. -10.7% in September). Shelter costs increased 4.8% annually (down from 5%), with mortgage interest easing to 14.7% from 16.7%. Food prices grew 2.7% year-over-year, outpacing headline inflation for the third month. Property taxes jumped 6%, marking the highest rise since 1992. The Bank of Canada may factor this return to its target rate in upcoming monetary policy decisions.

• Robinhood: Robinhood will acquire portfolio management platform TradePMR for $300 million in cash and stock, with the deal expected to close in the first half of 2025. TradePMR manages over $40 billion in assets, targeting the $7 trillion RIA market. Robinhood's shares are up nearly 175% in 2024, as the company expands its financial services, including futures trading and election contracts.

How gold & Canadian mining will benefit from Trump

The stock market and stuff

• NexGen Energy Completes Federal Technical Review For Rook I Project (theDeepDive)

• Seven & i founding family aims to raise $52 billion for buyout this year, NHK says (Reuters)

• Walmart may have to raise some prices if Trump tariffs take effect, CFO says (CNBC)

• BHP Says Copper Sector Needs $250 Billion Investment by 2034 (theDeepDive)

In the juniors

• PyroGenesis Signs Contract With Major Steelmaker To Assess Use Of Plasma Torches (theDeepDive)

• Cardiol To Advance CardiolRx To Phase III Trial Following Positive Results (theDeepDive)

• Hercules Metals Hits 0.47% Copper Over 338 Metres (theDeepDive)

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