Nojoud Al Mallees, The Canadian Press

The Liberal government plans to temporarily lift the federal sales tax off a slew of items just in time for Christmas and send cheques to millions of Canadians this spring, Prime Minister Justin Trudeau announced on Thursday.

"Our government can't set prices at the checkout, but we can put more money in people's pockets," Trudeau said at a press conference in Toronto alongside Finance Minister Chrystia Freeland. 

Prime Minister Justin Trudeau is expected to announce on Thursday a temporary GST break for certain essential items to help ease affordability pressures.

NDP Leader Jagmeet Singh says in a statement that the announcement is in response to his party's demands to permanently lift the goods and services tax on a range of expenses.

Canada's inflation rate climbed back up to two per cent in October, shifting expectations slightly in favour of a smaller, quarter-percentage point interest rate cut next month. 

The report from Statistics Canada on Tuesday said prices in October increased at a faster annual pace in five out of the eight major components of the consumer price index.

A major driving factor of the uptick in headline inflation was gasoline prices on an annual basis falling to a lesser extent in October compared with September.

Canada’s unemployment rate held steady at 6.5 per cent last month as hiring remained weak across the economy.

Statistics Canada’s labour force survey on Friday said employment rose by a modest 15,000 jobs in October.

Business, building and support services saw the largest gain in employment.

Meanwhile, finance, insurance, real estate, rental and leasing experienced the largest decline.

Many economists see weakness in the job market continuing in the short term, before the Bank of Canada’s interest rate cuts spark a rebound in economic growth next year.

Inflation finally hit the Bank of Canada's two per cent target in August after a tumultuous battle with skyrocketing price growth, raising the odds of larger interest rate cuts in the coming months.

Canada's annual inflation rate fell from 2.5 per cent in July to reach the lowest level since February 2021.

The slowdown can be attributed in part to lower gasoline prices, Statistics Canada said Tuesday in its consumer price index report.

A battle is heating up between Pierre Poilievre and Jagmeet Singh ahead of the return of the House of Commons next week, as the Conservatives challenge the NDP to help them bring down the government.

Singh said Wednesday he won't be taking advice from Poilievre, while sidestepping questions about whether the NDP would vote in favour of a non-confidence motion, as Poilievre challenged him to do.

New Democrats are huddling in Montreal to strategize a new path forward ahead of the fall parliamentary session — one that doesn't include the Liberals at their hips and ideally makes them a credible alternative to the Conservatives at the next election.

The three-day caucus retreat kicking off Tuesday comes less than a week after NDP Leader Jagmeet Singh announced the end of the supply-and-confidence agreement with the Liberals. 

It's also taking place in one of the two cities where the NDP is hoping to win a byelection on Sept. 16. 

China has announced an anti-dumping investigation into Canadian canola imports in response to Canada planning to impose tariffs on Chinese-made electric vehicles, steel and aluminum.

In a news release Tuesday, China's Ministry of Commerce said it is launching an anti-discrimination investigation into the tariffs and an anti-dumping probe into Canadian canola imports as well as certain chemical products.

Prime Minister Justin Trudeau announced Aug. 26 that Canada will impose a 100 per cent tariff on Chinese EVs and a 25 per cent tariff on steel and aluminum.

The Liberal government's decision to reel in the temporary foreign worker program after loosening the rules to help businesses find workers after the pandemic is sparking a contentious debate about whether governments should even try to address labour shortages.

Prime Minister Justin Trudeau announced on Monday that his government is bringing back stricter rules to stem the flow of low-wage temporary foreign workers, and he urged businesses to hire and train Canadian workers.

Canada’s annual inflation rate fell to 2.5 per cent last month, matching economists' forecasts and solidifying expectations for another interest rate cut in September.

Tuesday’s consumer price index report says prices for travel tours, passenger vehicles and electricity helped drive the headline figure lower.

Meanwhile, shelter costs are still the main driver of inflation as Canadians face significantly higher rents and mortgage payments.