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Bank of Canada Governor Stephen Poloz waits to testify before the Senate banking committee in Ottawa November 20, 2013.
Bank of Canada Governor Stephen Poloz waits to testify before the Senate banking committee in Ottawa November 20, 2013.
(Chris Wattie/Reuters)

Low inflation raises questions about rate cut

A weaker-than-expected report on inflation in Canada adds to evidence of an ongoing tug of war between economic growth and the hobbling effects of record household debt. The winner of this contest will determine the country’s economic future.

The top line consumer price index rose by 0.7 per cent in October. Coming in only slightly below economists’ forecasts, the figure is hardly a reason to panic or to gird for a tsunami of Japanese-style deflation. And core CPI, the Bank of Canada’s preferred measure of inflation, came in as expected at 1.2 per cent.