UPDATE 1-Canada Sept inflation unchanged, well under target
* Overall inflation 1.1 pct annually, 0.2 pct monthly
* Core 1.3 pct annually, 0.2 pct monthly
* Inflation has been under BoC target since April 2012
* Forecast had been for 1.0 pct overall, 1.4 pct core
OTTAWA, Oct 18 (Reuters) - Canada's annual inflation rate held steady at 1.1 percent in September while core inflation was unchanged at 1.3 percent, both well under the Bank of Canada's target rate of 2.0 percent, according to Statistics Canada data released on Friday.
On a monthly basis, overall and core consumer prices were 0.2 percent higher in September than in August.
The overall inflation numbers were a touch higher and core slightly lower than predicted. The median forecast in a Reuters survey of analysts was for 1.0 percent annual inflation and 0.1 percent monthly inflation; and for an annual core rate of 1.4 percent and monthly core of 0.3 percent.
The Bank of Canada aims to keep annual inflation between 1 and 3 percent, and the tame data underlines how little pressure it faces to raise interest rates. The last time inflation hit the central bank's precise target of 2 percent was April, 2012, and the last time core inflation, which strips out volatile items, hit that rate was June, 2012.
On a monthly basis, higher prices for household operations and furnishings, clothing and footwear, and health and personal care offset less expensive gasoline and food.
© Thomson Reuters 2016 All rights reserved.