Canadian consumer prices rose 2 per cent in the 12 months to September, a modest 0.1 point decline from August. The Bank of Canada's core measure of inflation, which excludes volatile prices such as energy and food products, registered 2.1 per cent. Consumer prices in BC rose 1.2 per cent.

CPI inflation continues to trend near the Bank of Canada's 2 per cent target, but should moderate substantially in coming months due to collapsing energy prices. Although core inflation is slightly above the Bank of Canada's target, we do not expect the Bank to alter its course unless inflation moves outside of its 1-3 per per cent control range.