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

Produce is shown in a grocery store in a file photo taken Nov. 30, 2018. THE CANADIAN PRESS/Nathan Denette

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.

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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.

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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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