Photo: Contributed

The dollar pulled back more than half a cent early Friday after Statistics Canada reported the country's inflation rate fell to its lowest level in more than three years.

The loonie was down 0.52 of a cent to 100.77 cents US before stock markets opened.

Statistics Canada said the annual inflation rate dropped to 0.8 per cent in November, affected primarily by lower gasoline prices and discounting by car dealers to attract sales. Economists had been expecting inflation rate would be 1.0 per cent, a drop of two-tenths of a per cent from the rate in October.

The agency also reported Canada's gross domestic product grew 0.1 per cent in October.