Consumer prices increased by 1.2 per cent in the 12 months ended in October, leaving Canada's inflation rate unchanged for three consecutive months.
Statistics Canada said Friday that smaller price increases for energy offset larger gains in food, air travel and property taxes.
The core index, which the Bank of Canada pays closer attention to in setting its policy decisions, was unchanged at 1.3 per cent.
The 1.2 per cent showing was stronger than expected by economists.
"With the sharp drop in prices recorded last December unlikely to be repeated, the inflation rates are likely to end the year higher than they were in October," RBC economist Dawn Desjardins said in a note following the release of the data.
"The low level of interest rates will likely spark a reacceleration in growth," she said. "This means that the bank's overnight policy rate will likely stay at one per cent until the middle of next year."
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