OTTAWA, Oct. 19 (Xinhua) -- The pace of inflation in Canada slowed more than expected in September as the price rise of gasoline continued to ease, according to Statistics Canada on Friday.
The consumer price index in September rose 2.2 percent from that a year ago, in comparison with a year-on-year increase of 2.8 percent in August.
The inflation report came ahead of the Bank of Canada's rate decision next week when it will update its forecast for the economy in its monetary policy report.
The Canadian central bank is expected to raise its key interest rate target, which sits at 1.5 percent, by a quarter of a percentage point.
Statistics Canada said prices were up in all eight major components for the 12 months to September.
The transportation index, which includes gasoline, was up 3.9 percent in September compared with a 7.2-percent move in August as gasoline prices last month went up 12 percent compared with a 19.9-percent increase in August.
However, the transportation group remained the largest contributor to the overall year-on-year increase in the index.
Food prices were up 1.8 percent while shelter costs rose 2.5 percent. Alcoholic beverages and tobacco products were up 4.4 percent.
