OTTAWA (Reuters) - Canada’s annual inflation rate cooled in November as gasoline prices tumbled, bringing the rate in line with the Bank of Canada’s targeted level, data from Statistics Canada showed on Friday.
The annualized inflation rate pulled back to 2.0 percent from October’s strong 2.4 percent, falling short of economists’ forecasts for 2.2 percent.
Core inflation, which strips out volatile items and is closely watched by the Bank of Canada, pulled back to 2.1 percent, which was also short of expectations for a rise to 2.4 percent.
A 5.9 percent drop in gasoline prices was the main driver of the slower yearly rise in overall inflation. Gasoline prices were at their lowest level since February 2011 in November, falling alongside crude oil prices.
Still, consumer prices increased in seven of the eight major components, led by higher costs for shelter and food. On a monthly basis, overall inflation edged down 0.4 percent, and the core measure declined 0.2 percent.
Reporting by Leah Schnurr; Editing by Chizu Nomiyama