The annual inflation rate rose to 0.7% in October



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Statistics Canada says the consumer price index in October increased 0.7% from a year ago as the annual pace of inflation increased driven by rising food prices.

The increase compared with a year-over-year increase of 0.5 percent in September.

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

The jump in October is the sharpest increase since June in an eight-month period in which monthly readings were below one percent.

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

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

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