Canada’s annual inflation rate edged down to 2.2% in October, according to new data released Monday by Statistics Canada. The reading matched expectations from financial analysts, based on consensus estimates from CIBC Economics.

A sharp drop in gas prices continued to play a key role in the decline. Pump prices fell 9.4% year-over-year in October, a bigger decrease than September’s 4.1% drop, which had helped push inflation to 2.4% in the prior month. Excluding gasoline, consumer prices were up 2.6%, unchanged from September.

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“This appears to be a somewhat encouraging report, with headline and median inflation easing,” wrote BMO chief economist Douglas Porter. “But most of the relief was already anticipated, and the fresh details aren’t particularly positive, especially with ongoing strength in insurance costs and a sudden rise in wireless charges.”

TD Bank economist Andrew Hencic said the data support the Bank of Canada’s decision to remain on hold at its December meeting. He noted that inflation is unlikely to fall below the lower end of the Bank’s target range due to continued supply-side challenges, but is also unlikely to accelerate given soft domestic demand. Market odds of another rate cut by April now sit at just 30%, Hencic added.

Insurance costs remained a pressure point, with home insurance rising 6.8% and auto insurance climbing 7.3% year-over-year. Over the past five years, home and mortgage insurance costs have surged 38.9% nationally, while vehicle insurance premiums are up 18.9%.

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Wireless phone service prices jumped 7.7% year-over-year — the first increase in two and a half years — following price hikes at major carriers. Porter noted that combined wireless and wireline service prices rose 7.9%, the largest annual increase since 1982.

Natural gas prices fell by 17% from a year earlier. Grocery inflation eased to 3.4% in October from 4.0% in September, but food prices remain elevated and have stayed above the overall inflation rate for nine consecutive months.

CIBC economist Andrew Grantham wrote that while inflation cooled as expected, the Bank of Canada would need to see a longer trend of easing price pressures and signs of renewed economic weakness before considering rate cuts. CIBC still expects no change to the overnight rate through the end of next year.

Philip Petursson, chief investment strategist at IG Wealth Management, warned that annual inflation could tick higher in coming months simply due to base effects. “This isn’t renewed price pressure — just math,” he said, noting that last year’s November and December readings were flat or negative, meaning any positive monthly increases now will lift the year-over-year rate.

The Bank of Canada’s preferred core measures also moderated. CPI-median fell to 2.9% from 3.1%, and CPI-trim slipped to 2.9% from 3.0%. The Bank, however, has indicated it is placing less emphasis on these measures alone.

On a monthly basis, CPI rose 0.2% in October, or 0.1% on a seasonally adjusted basis.