Canada’s inflation rate accelerated by more than expected in September, potentially casting doubt on the Bank of Canada’s interest rate decision next week.

The Consumer Price Index rose 2.4 per cent in September on an annual basis, up from August’s 1.9-per-cent pace, Statistics Canada said Tuesday. Financial analysts were expecting an inflation rate of 2.2 per cent.

Heading into Tuesday’s CPI report, the Bank of Canada was widely expected to cut its benchmark policy rate on Oct. 29. The central bank resumed cutting in September – the key interest rate is now 2.5 per cent – after three consecutive holds. The Bank of Canada had been on pause as it assessed the fallout from hefty U.S. tariffs.

But in September, the bank’s governing council decided that growth and employment concerns outweighed inflation risks from tariffs, leading them to lower borrowing costs.