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OTTAWA, Dec 19 (Reuters) – Lower gas prices pulled Canada’s annual inflation rate in November down to 1.7 percent, the first time in 10 months it has been below the Bank of Canada’s 2.0 percent target, Statistics Canada data indicated on Wednesday.
Analysts in a Reuters poll had forecast the annual rate would fall to 1.8 percent from the 2.4 percent seen in October. November’s rate matched the 1.7 percent seen in January 2018.
Gasoline prices fell by 5.4 percent from November 2017 on lower crude prices and overall energy costs dropped by 1.3 percent over the same period. In both cases, it was the first year-over-year decline since June 2017.
The Bank of Canada’s three core inflation measurements came in at 1.9 percent, the first time they have all been below 2.0 percent since June 2018.
The central bank, which had predicted lower gas prices to pull down the annual rate, is due to announce its next interest rate decision on Jan. 9 and markets expect no change.
Bank of Canada Governor Stephen Poloz complained earlier this month that overall economic data heading into the fourth quarter had been weaker than expected.
Reporting by David Ljunggren Editing by Frances Kerry
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