OTTAWA — There were signs inflation was easing in October, but a more muddled picture under the hood has most economists expecting the Bank of Canada will shift to the sidelines at its final interest rate decision of the year.

Cheaper prices at the gas pumps and grocery store helped bring inflation down to 2.2 per cent October, Statistics Canada said Monday.

That was a tick higher than economists’ expectations but down from 2.4 per cent in September.

Higher gasoline costs were blamed for the half-point spike in the September inflation reading, and Statistics Canada said easing pump prices last month helped rein inflation back in.

Prices at the grocery store also fell 0.6 per cent in October, the largest month-to-month decline since September 2020.

BMO chief economist Doug Porter said

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