Canada’s Annual Inflation Rises For First Time Since May

(RTTNews) - Canada’s annual inflation edged higher for the first time since May, as gasoline prices began to level off after large declines compared to a year ago.

Consumer prices rose 0.1% in October compared with October 2008, following a 0.9% decline in September, according to Statistics Canada.

Still, inflation rose at a slightly slower pace than forecast. Economists were looking for an annual increase of 0.3%.

The rise in the all-items Consumer Price Index (CPI) was mostly due to less downward pressure from gasoline prices. Gasoline prices in October 2009 were 13.1% below the level in October last year, compared with a 23.0% drop between September 2008 and September 2009.

Excluding energy, the CPI rose 1.4% in the 12 months to October, slightly higher than the 1.3% increase in September.

Higher prices were most significant in food, household operations, furnishings and equipment, and recreation, education and reading.

On a seasonally adjusted monthly basis, the CPI rose 0.4% from September to October. monthly CPI has gone up in five of the past six months

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