Canada records inflation of 0.1%

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Canadian inflation rose to an annual rate of 0.1% last month, as increases in the price of food and consumer goods offset a fall in the cost of petrol.

The increase, as measured by the Consumer Price Index, compares with the deflation of 0.9% recorded in September, said Statistics Canada.

Canada, which has yet to release its economic growth data for July to September, is still in recession.

It continues to see high unemployment, with a jobless rate of 8.6%.

Canada experienced deflation in September due to petrol prices being 23% lower than the same month in 2008.

Petrol prices fell again in October, but at a lower rate of 13%.

The most recent Gross Domestic Product data showed that the Canadian economy - the world's 11th largest - contracted by 3.2% between April and June.

Its interest rates are currently set at 0.25%, where the country's central bank has pledged to keep them until June of next year.

The Canadian government of Stephen Harper is continuing with a series of stimulus packages to help boost the economy.