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Canada's annual inflation rate accelerates to 0.7% in October

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OTTAWA, Nov 18 (Reuters) - Canada’s annual inflation rate accelerated to 0.7% in October, up from a year-over-year increase of 0.5% in September, mainly on higher food prices, Statistics Canada said on Wednesday.

The result beat analysts estimates for an annual 0.4% increase in October. Excluding gasoline, prices rose 1.0% in October from a year earlier, matching September.

Prices rose in five of the eight major components of the index, driven by food and shelter costs, StatsCan said.

After the data, the Canadian dollar held onto earlier gains, up 0.2% on the day.

Two of the three core measures of inflation increased.

The common measure, which the Bank of Canada says is the best gauge of the economy’s underperformance, gained slightly to 1.6% from 1.5% in September. The CPI trim measure also increased to 1.8% from 1.7%, and the median remained at 1.9%.

Reporting by Julie Gordon and Dale Smith, writing by Steve Scherer, editing by Andrew Heavens

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