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.

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.