Canada’s annual inflation rate ticked lower to 2.2% in October from 2.4% in the previous month, which was above economists’ expectations.

Gasoline prices dropped sharply in response to lower oil prices due to global supply concerns. The price growth for shelter and food slowed in October compared to the previous month.

Core inflationary pressures remained elevated, which could keep the Bank of Canada (BoC) from cutting interest rates at the end of November.

Meanwhile, producer prices increased by 1.5% in October over the previous month, the largest increase since the beginning of the year. Upward pressure came from higher prices for non-ferrous metal products and softwood lumber.

Elevated core inflation and higher producer prices suggest inflation remains stubbornly high. This could keep the BoC on the sidelines at its December 10 meeting.

As the U.S. government shutdown ended, the U.S. Bureau of Labor Statistics released U.S. labour market data for September. Looking ahead, a lack of some critical data may result in the combination of October and November’s results being included in the December release.

In September, the U.S. economy added 119,000 jobs, which was above expectations, and rebounded from a revised 4,000 job losses in August. This was the highest number of monthly job additions since April.

The unemployment rate increased to 4.4% as the number of unemployed increased.

The higher-than-expected jobs figure showed some stability in the labour market. However, job losses in August and the highest number of continuing jobless claims in four years in November suggest the labour market is on relatively shaky footing.

Job additions raised some doubt whether the U.S. Federal Reserve Board will lower interest rates again in 2025.

A final reading showed that Europe’s annual inflation rate declined to 2.1% in October from 2.2% in the previous month.

The price growth for food slowed, while energy costs declined. Conversely, service costs accelerated in October compared to September.

The core inflation rate was unchanged at 2.4% in October.

A flash estimate showed Europe’s critical services sector expanded at its fastest pace in 18 months in November, benefiting from stronger new orders. Employment growth also edged higher.

Europe’s economy has shown signs of stabilizing with a trade deal reached and an aggressive period of monetary easing. The European Central Bank (ECB) has held interest rates steady at three straight meetings, believing the European economy is in a stable position. However, the ECB acknowledged that risks remain, which could influence policy decisions at upcoming meetings.

Japan’s gross domestic product contracted at an annualized pace of 1.8% over the third quarter of 2025, according to a preliminary estimate. This marked the first time Japan’s economy shrank since the first quarter of 2024.

A decline in consumer spending weighed on growth over the quarter. Net exports also detracted from growth. Exports declined by 1.2%, largely in response to U.S. tariffs. Despite a trade deal, Japan’s economy still faces a 15% tariff on many Japanese goods.

Data in September did bring some good news for Japan’s critical industrial sector. Industrial output rose by 2.6% in September, which was its first increase since June and the biggest since March 2024.

Japan’s annual inflation rate accelerated to 3.0% in October from 2.9% in September. Higher prices are weighing on Japanese consumers.

Japan’s economy is being hindered by trade tensions and higher prices. The Bank of Japan appears poised to raise interest rates again as it seeks to bring down inflation.