Inflation rate up 0.7% in October, driven by higher food prices

Statistics Canada says the consumer price index in October was up 0.7 per cent compared with a year ago as the annual pace of inflation increased led by higher food prices. The increase compared with a year-over-year rise of 0.5 per cent in September.

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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.

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The monthly rise was almost entirely driven by rising food prices, particularly lettuce and fresh or frozen chicken, Statistics Canada says.

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.