Inflation rate inches higher

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Statistics Canada says its consumer price index was up 1.3 per cent in September compared with a year ago.

That indicates slightly higher inflation compared with August when the index was up 1.1 per cent.

Statistics Canada says prices were up in all eight major components that it tracks, with the shelter and transportation sectors contributing the most to rise.

The transportation index gained 2.3 per cent compared with a year ago, while the shelter category was up 1.7 per cent.

Food prices were up 0.1 per cent, the sector's smallest year-over-year increase since February 2000.

Food from stores posted their first year-over-year decline since March 2008 as they fell 0.9 per cent. Food from restaurants was up 2.5 per cent.

The Bank of Canada's core index, which excludes some of the most volatile components, increased 1.8 per cent compared with a year ago, matching the gain in August.

The core inflation was in line with analyst estimates but overall inflation was below the estimated 1.5 per cent, according to Thomson Reuters.

Prices were up more on a year-over-year basis in September than in August in every province except Alberta and British Columbia, where they posted smaller increases.

Statistics Canada also reported Friday that retail sales fell 0.1 per cent to $44.0 billion in August due to lower sales at motor vehicle and parts dealers, and general merchandise stores.

B.C.'s inflation rate was pegged at 1.8 per cent.