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Canada's inflation rate rises in October

Last Updated Nov 18, 2020 at 7:39 am PST

Statistics Canada building and signs are pictured in Ottawa on Wednesday, July 3, 2019. THE CANADIAN PRESS/Sean Kilpatrick
Summary

The inflation rate rose to 0.7 per cent in October

Economists had expected a year-over-year increase of 0.4 per cent

OTTAWA – Canada’s inflation rate rose 0.7 per cent in October from a year earlier, after a 0.5 per cent increase in September, Statistics Canada says.

The rise in the Consumer Price Index was almost entirely driven by food prices, particularly lettuce and fresh or frozen chicken, according to the agency. Excluding gasoline, the CPI rose 1 per cent. Gas was down 12.4 per cent in October year-over-year.

Economists had expected a year-over-year increase of 0.4 per cent, according to financial data firm Refinitiv.

The jump in October is the sharpest increase since June amid an eight-month spell where monthly readings have been under one per cent.

The agency says rising housing costs contributed the most to the year-over-year increase as lower mortgage rates have coincided with increased demand for single-family homes.

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