In Canada both headline and core inflation increase 0.2% in October

Consumer prices advanced last month amid higher transportation and shelter costs, official figures revealed on Friday. According to Statistics Canada, the headline CPI rose 0.2%  in October, following the preceding month's gain of 0.1%. On an annual basis, inflation grew 1.5%, after rising 1.3% in September and 1.1% in August. Both readings were in line with analysts' projections. Meanwhile, the so-called core CPI, which excludes the price of food and energy items, climbed 0.2% month-over-month in the same month, unchanged from September, while markets anticipated a slight increase to 0.3%. Year-over-year, core consumer prices rose 1.7%, below market consensus of 1.8%.  Transportations costs jumped 3% in October, compared to the same month one year ago, driven by a 2.5% increase in the price of gasoline. The price of passenger vehicles increased 4.4%. Shelter costs grew 1.9%, whereas homeowners' replacement cost and electricity prices rose 4.1% and 5.3%, respectively. However, these increases were partly offset by a 0.7% decline in the price of food, 2.1% decrease in grocery store prices and 2.6% drop in restaurant prices. Last month, the Bank of Canada, which aims at 2% inflation, left its key interest rates unchanged but signaled further monetary stimulus is on the table.