From the FXWW Chatroom – Canadian CPI heated up again in October, although given the recent dive in oil prices that acceleration will prove temporary. Headline CPI rose 0.3% NSA on the month, taking the annual rate up to 2.4% (from 2.2% in September). Statistics Canada said that inflation in passenger vehicles accelerated due to the availability of new models and fewer rebates. The recent volatility in air transportation, following a methodology change earlier in the year, also seems to have cropped up again with an acceleration here also contributing to the headline advance. However, given the recent fall in oil/gasoline prices, headline CPI inflation will cool noticeably next month and the BoC’s three core measures were all in line with expectations and continue to average 2%. Separately, September retail sales did little to help the tracking forecast for September and Q3 GDP, despite coming in slightly above consensus expectations at 0.2% (+0.5% for volumes). Given soft wholesale and manufacturing releases, September’s still likely to be a flat month for GDP, with Q3 tracking 1.8% (in line with the BoC’s October projection). With the pick-up in CPI likely to prove temporary, and growth still tracking just below 2% for Q3, we see nothing here to tip the BoC’s hand towards a December hike. We continue to favour them waiting until Q1 2019, by which time we’ll hopefully see some improvement in growth data and global oil prices.