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.

The slight acceleration in prices—still within the Bank of Canada’s target range—diminishes the chance of another jumbo interest rate cut in December.

Canada’s inflation rate edged back to BoC’s 2% target in October, higher than expected. TD Asset Management's Sam Chai looks at the outlook for rates and implications for the bond market.