(Adds details from report)
OTTAWA, May 20 (Reuters) - Canada's annual inflation rate
rose as expected in April as consumers paid more for food and
shelter, bringing the rate closer to the central bank's target,
data from Statistics Canada showed on Friday.
The annual inflation rate was 1.7 percent last month, in
line with economists' forecasts. The core inflation rate, which
strips out some volatile items and is watched by the Bank of
Canada, was more robust, rising to 2.2 percent.
Nonetheless, the figures were unlikely to change the path of
monetary policy as the bank has said inflation is being
influenced by temporary factors. The central bank, which has an
inflation target of 2 percent, is widely expected to hold
interest rates at 0.50 percent when it meets next week.
BOCWATCH
Overall, prices rose on an annual basis in seven of the
consumer price index's eight major components. Canadians paid
3.2 percent more for food, though the pace of the increase was
slightly slower than the month before. The cost of shelter rose
1.4 percent, mainly due to smaller declines for natural gas and
fuel oil prices.
The decline in energy prices moderated, with prices down 3.2
percent compared to the hefty annual 7.8 percent decrease seen
in March. Excluding energy, inflation rose to 2.1 percent.
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Graphic - Canada inflation, central bank rate: http://link.reuters.com/cut67s
Graphic - Canada economic dashboard: http://graphics.thomsonreuters.com/15/sc-canada/index.html
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