OTTAWA: Canada’s annual inflation rate eased slightly to 6.8% in November as gas prices rose at slower pace and offset a surge in shelter costs, Statistics Canada data showed on Wednesday.

The headline inflation number was still a notch above analyst forecasts of 6.7%, but down from 6.9% in October. Excluding food and energy, prices rose 5.4% compared with a rise of 5.3% in October.

On the month, the consumer price index rose 0.1%, again above analysts’ expectations of prices staying flat.

Gasoline prices rose 13.7% after rising 17.8% in October, largely driven by price declines in Western Canada, Statscan said.

Housing costs accelerated in November, mainly due to rising mortgage interest cost and rent. The annual surge of 14.5% in mortgage cost was the largest since February 1983.

Canada home price index falls more sharply in November: Teranet

The Bank of Canada has hiked rates at a record pace of 400 basis points in nine months to 4.25% - a level last seen in January 2008 - to fight inflation that is far above its target.

Going forward, the bank has said it will be more data-dependent in setting the policy rate.

The average of central bank’s core measures of inflation, CPI-median and CPI-trim, came in at 5.2% compared with 5.1% in October. CPI-common has become less reliable due to large revisions, the bank has said.

The Canadian dollar was trading at 1.3615 to the greenback, or 73.45 U.S. cents.