UPDATE 3-Canada inflation data shows price pressures constrained

Fri Nov 23, 2012 11:22am EST
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* 12-month rise in gasoline and electricity prices slows

* Prices up in all CPI components except clothing, footwear

* Core inflation unchanged from September at 1.3 pct

* Bank of Canada to stay on sidelines, economic analysts say

By Louise Egan

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.

Inflation has remained at, or below, the Bank of Canada's 2 percent target for eight consecutive months, according to Statistics Canada data on Friday.

The consumer price index rose 1.2 percent in October year-on-year, while the core inflation rate, which excludes prices for gasoline and other volatile items, was up 1.3 percent. Compared with September, the gauges rose 0.2 percent and 0.3 percent, respectively.   Continued...