Canadian inflation rate stays at 1.2 per cent: StatsCan
The Canadian Press
Published Friday, October 19, 2012 8:46AM EDT
OTTAWA -- Statistics Canada says consumer prices rose slightly in September from the previous month, but it was not enough to budge the annual inflation rate from the relatively modest 1.2 per cent.
The agency says an increase in prices for gasoline and electricity were the main contributors to inflation, but they were offset by declines in the cost of purchasing a motor vehicles, women's clothing and mortgages.
On a month-to-month basis, prices rose 0.2 per cent.
There was still no sign of the impact of this summer's drought on overall food prices, which in September were a modest 1.6 per cent higher than last year.
On a month-to-month basis, food prices actually fell 1.1 per cent in September, led by seasonal declines in fresh vegetables and fruit.
The Bank of Canada's core rate, which measures underlying price pressures by excluding volatile items such as gasoline, declined three-tenths of a point to 1.3 per cent.
That is an indication that there is little inflationary pressure building up in Canada.