Canada Sept inflation unchanged, well under target

Reuters

* 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 rateheld steady at 1.1 percent in September while core inflation wasunchanged at 1.3 percent, both well under the Bank of Canada'starget rate of 2.0 percent, according to Statistics Canada datareleased on Friday.

On a monthly basis, overall and core consumer prices were0.2 percent higher in September than in August.

The overall inflation numbers were a touch higher and coreslightly lower than predicted. The median forecast in a Reuterssurvey of analysts was for 1.0 percent annual inflation and 0.1percent monthly inflation; and for an annual core rate of 1.4percent and monthly core of 0.3 percent.

The Bank of Canada aims to keep annual inflation between 1and 3 percent, and the tame data underlines how little pressureit faces to raise interest rates. The last time inflation hitthe central bank's precise target of 2 percent was April, 2012,and the last time core inflation, which strips out volatileitems, hit that rate was June, 2012.

On a monthly basis, higher prices for household operationsand furnishings, clothing and footwear, and health and personalcare offset less expensive gasoline and food.

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