World Economy

Canada’s Annual Inflation at 10-Month Low

Canada’s  Annual Inflation  at 10-Month LowCanada’s  Annual Inflation  at 10-Month Low

Canada’s annual inflation rate in August dipped to a 10-month low of 1.1%, the seventh consecutive month it has remained below the Bank of Canada’s 2% target, Statistics Canada said.

Analysts polled by Reuters had forecast the annual rate would edge up to 1.4% from 1.3% in July. The August rate was the lowest since the 1% recorded in October 2015. Food prices exerted the main drag on the overall rate, rising by 1.1% in the 12 months to August compared to a 1.6% year-on-year-increase in July. The recreation, education and reading index grew 1.1% in the year to August, down from 1.9% in July. The annual core inflation rate, which strips out the prices of energy and some foods and is watched closely by the Bank of Canada, dipped to 1.8% from 2.1%. The central bank, which says inflation is being influenced by temporary factors, is widely expected to keep interest rates steady until 2018.