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OTTAWA, Sept 23 (Reuters) - Canada's annual inflation rate in August dipped to a 10-month low of 1.1 percent, the seventh consecutive month it has remained below the Bank of Canada's 2.0 percent target, Statistics Canada said on Friday.
Analysts polled by Reuters had forecast the annual rate would edge up to 1.4 percent from 1.3 percent in July. The August rate was the lowest since the 1.0 percent recorded in October 2015.
Food prices exerted the main drag on the overall rate, rising by 1.1 percent in the 12 months to August compared to a 1.6 percent year-on-year-increase in July. The recreation, education and reading index grew 1.1 percent in the year to August, down from 1.9 percent in July.
The annual core inflation rate, which strips out the prices of energy and some foods and is watched closely by the Bank of Canada, dipped to 1.8 percent from 2.1 percent.
The central bank, which says inflation is being influenced by temporary factors, is widely expected to keep interest rates steady until 2018.
Reporting by David Ljunggren; Editing by Paul Simao