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OTTAWA, Nov 23 (Reuters) - Canada’s annual inflation rate in October unexpectedly increased to 2.4 percent from 2.2 percent in September on higher costs for air fares, cars and travel tours, Statistics Canada data indicated on Friday.
Analysts in a Reuters poll had forecast the rate would stay at 2.2 percent. October marked the ninth consecutive month it has exceeded the Bank of Canada’s 2.0 percent target.
The central bank, which has consistently said inflation will move back down toward 2 percent by early 2019, is due to announce its next interest rate decision on Dec. 5 and markets largely expect no change.
Prices for travel tours rose 3.0 percent from October 2017 compared to a 4.4 percent year-over-year decline in September. Passenger vehicle prices rose by 1.7 percent compared to a year earlier on lower rebates and greater variety of models.
Two of the three central bank’s three core inflation measures posted gains while CPI common, which the bank says is the best gauge of the economy’s underperformance, was unchanged at 1.9 percent.
Reporting by David Ljunggren Editing by Bill Trott