Canada Inflation Stays Below Bank of Canada Target Band

Canadian inflation held below the central bank’s target band for a second month while retail sales unexpectedly fell, suggesting weak consumer demand will lead Governor Stephen Poloz to prolong a period of low interest rates.

The consumer price index rose 0.9 percent in November from a year ago, Statistics Canada said today from Ottawa, while the core rate excluding eight volatile items unexpectedly slowed to to 1.1 percent from the 1.2 percent pace in October. Retail sales for October fell 0.1 percent on a decline at new car dealerships, the first drop in four months.