Canada's annual inflation rate rose more than expected to 2.0% in October as gas prices fell less than the previous month, data showed on Tuesday, causing markets to scale back bets on a big rate cut next month.

Inflation in Canada rose by more than forecast and underlying price pressures reaccelerated, hiccups that may dissuade policymakers from a second straight 50 basis-point cut to interest rates next month.

Canada's inflation rate hit two per cent in October, an increase over the last month, but that doesn't mean that Canada is missing its target. CBC senior business reporter Armstrong breaks down why there's an uptick and the effect on Bank of Canada interest rate cuts.