By Paul Vieira
OTTAWA--Canada's annual inflation rate accelerated in January, driven by higher gasoline prices and car-insurance premiums.
Canada's consumer-price index climbed 2.4% on a year-over-year basis in January, Statistics Canada said Wednesday. Market expectations called for a 2.3% rise, according to economists at TD Securities.
In the previous month, inflation climbed 2.2%.
On a month-over-month basis in January, CPI climbed 0.3%.
The Bank of Canada's preferred measures for underlying inflation edged lower from the previous month, with the average core CPI for January at 2.03%, versus a revised 2.07% in the previous month. These core readings are designed to filter out volatile, month-to-month swings in prices.
The Bank of Canada's task is to set interest rates at a level that achieves and maintains 2% inflation. In January, the central bank kept its benchmark interest rate unchanged at 1.75%, where it has been for more than a year, but marked down its estimates for near-term growth. Bank of Canada Gov. Stephen Poloz also opened the door for a future rate cut if the domestic outlook deteriorates.
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(END) Dow Jones Newswires
February 19, 2020 09:02 ET (14:02 GMT)Copyright (c) 2020 Dow Jones & Company, Inc.