Last week, it was reported that the US inflation rate accelerated in September, which raised bets the US Federal Reserve Board (Fed) may raise interest rates again. This week, the attention turns to Canada’s inflation rate, which will be closely analyzed so market participants can predict the next move from the Bank of Canada (BoC). The BoC and Fed make their next interest rate announcements at the end of October. Here are this week’s key announcements.

Canada’s inflation rate in September will be announced today.  The annual inflation rate was 3.0% in August, unchanged from July. Rising energy prices continue to put upward pressure on Canada’s inflation rate.
Statistics Canada will release Canada’s retail sales  on Friday. Despite falling in July, Canada’s retail sales have held up well in 2026. Some of that growth, however, has come from rising prices, particularly at the gasoline pump.
We will get a glimpse  into the health of the US real estate market on Tuesday when pending home sales are announced. Rising mortgage rates and high home prices may put pressure on potential buyers.
Looking elsewhere, Europe’s retail sales will be released tomorrow, UK home prices on Wednesday, Mexico’s inflation rate on Thursday and Japan’s household spending on Thursday night.
Notable earnings in Canada include Waste Connections and Rogers Communications. Key earnings in the US include Netflix, Tesla, Meta Platforms, American Airlines and American Express.

With the BoC’s interest rate decision quickly approaching and concerns about prices, September’s inflation report will be closely analyzed by market participants. While the BoC has held steady noting inflation has largely been contained to energy products, it noted it is willing to raise interest rates if inflation persists and broadens to other consumer products. Oil prices remain elevated with few signs of easing substantially anytime soon.

If you would like to discuss this economic and market update or have questions about your finances and investments, please feel free to contact me anytime.