The Globe and Mail reports in its Wednesday edition that Canada's inflation rate dipped below the Bank of Canada's 2-per-cent target for the second time in three months. The Globe's Matt Lundy writes that the Consumer Price Index rose at an annual rate of 1.9 per cent in November, down from 2 per cent in October, Statistics Canada said Tuesday. On a monthly basis, the CPI was unchanged in November from October, versus expectations of a 0.1-per-cent increase. Inflation has eased to more typical rates this year, owing to higher interest rates that have curbed demand, improvements in supply chains and a sluggish economy. The annual inflation rate has spent all of 2024 below 3 per cent. This progress has allowed the Bank of Canada to cut its policy rate at five consecutive meetings since June, and most recently by half a percentage point last week. But the path for inflation and interest rates is highly uncertain. The Canadian economy is facing the prospect of hefty U.S. tariffs from the incoming Trump administration. "With an America-first agenda south of the border, Canada's economy faces a challenging backdrop, and lower interest rates are required for support," TD senior economist Leslie Preston said in a client note.