Annual inflation in Canada slowed in October from the previous month, a result likely to reinforce the Bank of Canada's cautious approach to setting interest-rate policy.
Canada's all-items consumer price index rose 1.4% on a year-over-year basis in October, Statistics Canada said Friday, following a 1.6% advance in September. The October figure matched market expectations, according to economists at Royal Bank of Canada.
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On a month-over-month basis, prices rose 0.1%.
Gasoline prices rose in October on an annual basis but at a significantly slower pace compared to the previous month. Excluding gasoline, CPI climbed 1.3%.
Meanwhile, underlying, or core, inflation ranged from 1.5% to 1.7%, based on the preferred gauges used by the Bank of Canada. This resulted in an average core rate of 1.6%, or unchanged from the previous month.
The Bank of Canada sets the level of interest rates to achieve and maintain 2% inflation. After two quarter-point rate rises in July and September, lifting the policy rate to 1%, the central bank said it was adopting a cautious approach. This was partly due, it said, to the central bank's tendency to place greater weight on the downside risk posed by lower-than-expected inflation.
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(END) Dow Jones Newswires
November 17, 2017 08:45 ET (13:45 GMT)