Statistics Canada reported on Wednesday the country’s consumer price index (CPI) rose 0.4 percent m-o-m in September, following a 0.1 percent m-o-m drop in the previous month. This was the first m-o-m advance in consumer prices since June.

On the y-o-y basis, Canada’s inflation rate increased 0.7 percent last month after gaining 0.5 percent in September.

Economists had predicted inflation would increase 0.2 percent m-o-m and 0.4 percent y-o-y in October.

According to the report, prices rose in five of the eight major components on a year-over-year basis in October, led by gains in prices for food (+2.3 percent y-o-y), shelter (+1.8 percent y-o-y) and health and personal care (+1.8 percent y-o-y).

Meanwhile, the closely watched the Bank of Canada's core index rose 1.0 percent y-o-y in October, the same pace as in September. Economists had forecast an advance of 0.9 percent y-o-y.