Canada’s inflation rate last month was the slowest since October 2013, falling below the central bank’s target band on a drop in energy costs.
The consumer price index rose 0.8 percent in April from a year ago after March’s 1.2 percent pace, Statistics Canada said Friday from Ottawa. The core rate, which excludes eight volatile products, increased 2.3 percent. That measure accelerated at a 2.4 percent pace in March, the fastest since 2008.
Economists surveyed by Bloomberg forecast the total rate would rise 1 percent and core by 2.4 percent.
Bank of Canada Governor Stephen Poloz said in a May 19 speech it may take until around the end of 2016 before the economy reaches full output and price gains return sustainably to a 2 percent target.
The report is the last major indicator before the next interest-rate announcement on May 27, and economists surveyed by Bloomberg predict the benchmark overnight rate will remain at 0.75 percent where it’s been since a reduction in January.
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