Canada inflation drops to a three-year low in January

OTTAWA (Reuters) – Canada’s annual inflation rate in January dropped to a three-year low of 0.5 percent from 0.8 percent in December, largely due to lower gas prices, Statistics Canada said on Friday.

The rate is less than the 0.7 percent predicted by market analysts and far lower than the Bank of Canada’s 2.0 percent target, offering further proof that the central bank is under no pressure to raise interest rates. The annual rate was the lowest since the 0.1 percent recorded in October 2009.

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