Statistics Canada released consumer price inflation data on Friday. Canadian consumer price inflation fell 0.2% in September, missing expectations for a 0.1% decline, after a flat reading in August.

The monthly decline was driven by a drop in transportation prices, which slid 1.4% in September.

On a yearly basis, the consumer price index dropped to 1.0% in September from1.3% in August, missing expectations for a decrease to 1.1%.

The consumer price index was partly driven by higher food prices. Food prices climbed 3.5% year-on-year in September, while transportation prices decreased 3.5%.

Clothing and footwear prices climbed by 1.2% in September from the same month a year earlier, while gasoline prices dropped 18.8%.

The Canadian core consumer price index, which excludes some volatile goods, rose 0.2% in September, after a 0.2% gain in August.

On a yearly basis, core consumer price index in Canada remained unchanged at 2.1% in September, in line with expectations.

The Bank of Canada's inflation target is 2.0%.