Canadian inflation settled exactly at the Bank of Canada's target of 2% in September, with the core rate staying at 2.1%, both as expected, according to Statistics Canada data released on Friday.
Bank of Canada Governor Stephen Poloz has said some recent price increases were temporary and therefore should be ignored, suggesting a lower underlying rate, but for now inflation is at the midpoint of its target range of 1% to 3%. Overall inflation was 2.1% in August.
Month on month, consumer prices rose by 0.1% in September, and core prices, which strip out volatile items like mortgage interest cost and natural gas, rose by 0.2%, again exactly as forecast in a survey of analysts.
Shelter costs were 2.7% higher in the 12 months to September, with natural gas 16.2% more expensive.
Food was also 2.7% higher, led by an 11.5% rise in meat. Costlier meat is an example Poloz cites as being due to temporary factors rather than to a tightening of the economy, and therefore argues that monetary policy should not adjust to it.
