CanadaÃ¢â‚¬â„¢s consumer prices advanced less than forecast in November as cost increases for energy and food moderated, giving the Bank of Canada scope to hold interest rates steady until the second quarter of next year.
The consumer price index rose 2 percent in November following a 2.4 percent gain in October, Statistics Canada said today. The core rate, which excludes eight volatile items such as gasoline and which is watched closely by the Bank of Canada, rose 1.4 percent, the slowest pace since March 2008.
The central bank, which aims to keep inflation close to its 2 percent target, said in October inflation will average 2.1 percent in the October-December period, and core prices will average 1.6 percent. The bank kept its key lending rate at 1 percent Oct. 19 after three prior increases, and said inflation pressures will be moderated by Ã¢â‚¬Å“slackÃ¢â‚¬Â in the economy that may persist until the end of 2012.
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