Canada's inflation rate slowed to 0.8 per cent in November, down from 1.2 per cent the previous month and the lowest rate since October 2009.
Statistics Canada said Friday the drop was attributable to a slowdown in the increase for gas prices, which rose 0.4 per cent on an annual basis during the month.
On a monthly basis, gas prices in November were actually almost six per cent lower than they were in October.
Lower prices for cars were also a factor, with vehicle prices down 1.8 per cent in the year up to November.
The Bank of Canada's core rate, which strips out volatile food and energy prices, sat at 1.2 per cent for the month, down 0.1 per cent, but was still well within the central bank's target range of between one and three per cent.
"CPI below one per cent is not anyone's idea of capacity pressure in the economy," Scotiabank economist Dov Ziegler said in a note, suggesting the weak inflation figure is further evidence that the central bank will keep interest rates where they are for the foreseeable future.
Regionally, inflation was highest in Prince Edward Island and Quebec at 1.5 per cent, and lowest in British Columbia, at a barely visible 0.1 per cent.
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