Consumer price inflation in Canada slowed in September more than forecast, reflecting lower gasoline prices and an economy struggling with too much slack. The consumer price index was 1 percent above year-earlier levels, Statistics Canada said Friday from Ottawa. That’s down from 1.3 percent in the prior two months, and lower than the average of 1.1 percent this year. The Bank of Canada sees weak price gains as a sign the economy is running below capacity, and has been trying to drive inflation back up to its 2 percent target by keeping interest rates at historic lows. The central bank kept its key overnight rate at 0.5 percent this week after cutting it in January and July to cushion the damage from an oil-price shock. “Headline inflation remains very tame amid a generally soft economic backdrop and a steep drop in energy prices,” Benjamin Reitzes, senior economist at BMO […]