(Adds details of release, background)
OTTAWA, Feb 24 (Reuters) - Canada's annual inflation rate unexpectedly jumped to 2.1 percent in January, its highest for more than two years, on a surge in gasoline prices, Statistics Canada data indicated on Friday.
Analysts polled by Reuters had forecast an annual rate of 1.6 percent, below the Bank of Canada's 2.0 percent target. The January rate was the highest since the 2.4 percent recorded in October 2014.
The main reason for the increase was a 20.6 percent year-on-year jump in gasoline prices, the largest yearly increase since September 2011. Consumers paid 2.4 percent more for shelter while food prices slipped by 2.1 percent from January 2016.
All three new measures of core inflation the Bank of Canada established late last year showed underlying inflation below 2.0 percent. CPI common, which the central bank says is the best correlation to the output gap, was furthest away from target, slipping to 1.3 percent from 1.4 percent.
CPI median, which shows the median inflation rate across CPI components, remained at 1.9 percent while CPI trim, which excludes upside and downside outliers, increased to 1.7 percent from 1.6 percent.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Graphic - Canada inflation, central bank rate:
http://link.reuters.com/cut67s Graphic - Canada economic snapshot:
http://tmsnrt.rs/2e8hNWV
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