CORRECTED-UPDATE 2-Canada inflation steady in October at 1.2 pct

Fri Nov 23, 2012 9:46am EST
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(Corrects final paragraph to show food prices grew 1.6 percent in September year-on-year, not 1.2 percent.)

* 12-month gains in gasoline and electricity prices slower

* Prices rise in all CPI components except clothing, footwear

* Core inflation unchanged from September at 1.3 pct

* Bank of Canada to stay on sidelines - economic analyst

OTTAWA, Nov 23 (Reuters) - Canadian inflation was slightly stronger than expected in October as prices rose for almost all consumer items, but the rate remained well below the central bank's 2 percent target, suggesting interest rate hikes are still a long way off.

Gasoline and electricity prices grew at a slower year-on-year pace than in September while prices for food, air travel and property taxes rose more sharply, Statistics Canada said in a report on Friday.

Annual inflation held steady at 1.2 percent, unchanged from September but above the 1.1 percent forecast by market players. The consumer price index rose 0.2 percent in October from September.

Core inflation, which strips out gasoline and other volatile items, was unchanged from September at 1.3 percent year-on-year. Market players had forecast 1.2 percent core inflation.   Continued...