Canada's annual inflation rate fell to 1.7% in April due to a drop in energy prices, but analysts said a rise in closely watched core measures would make life hard for the Bank of Canada as it ponders its next rate move.

The headline figure, however, concealed a bundle of sharply higher prices on food, cars and rent, and adds to a raft of crosscurrents facing central bank policymakers.

Canadian inflation eased to its slowest pace since September on the elimination of the consumer carbon tax and lower oil prices.