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 rose to two per cent in October, up from the 1.6 per cent for September, Statistics Canada said on Tuesday morning.