OTTAWA – Canada’s annual inflation rate held at 1.0 percent in October, remaining at the lower end of the central bank’s target range as it was held down by cheaper energy prices, data from Statistics Canada showed on Friday.
The figures were in line with economists’ expectations that inflation would match September’s reading.
Prices were higher in seven of the eight major components of the consumer price index, led by a 4.1 percent increase in food prices. Food purchased at stores was more expensive than a year ago, including fresh fruit and dairy products.
The cost of shelter was also higher. Transportation was the only component to fall, driven by the drop in gasoline prices and making for its twelfth consecutive year-over-year decline.
Core inflation, which strips out volatile items and is watched by the Bank of Canada, was more robust, staying at a 2.1 percent annual rate.
The central bank has said there are a number of factors that are having a temporary impact on inflation, including the drop in energy prices and the depreciation of the Canadian dollar. The bank is widely expected to leave interest rates on hold when it meets next month.
(Reporting by Leah Schnurr; Editing by Nick Zieminski)
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