In September, consumer prices rose in seven of the eight major components tracked by Statistics Canada, led by higher food prices.

Consumer prices in Canada ticked up 1.0 percent in September compared with the same month previous year, held largely in check by a drop in prices at the gas pump, officials said Friday. Economists predicted overall monthly prices would decline 0.1 percent and the core rate would rise 0.3 percent, according to the median forecasts. Market expectations were for a 2.2% rise.

Core inflation, which strips out volatile items and is closely watched by the Bank of Canada, advanced by 2.1 per cent, the same as in August.

The annual pace of inflation slowed in September due to lower gasoline and other energy prices, but the cost of groceries, restaurant meals and many other things pushed higher.

Core inflation in Canada has been at or above the 2% level for more than a year.

The Bank of Canada on Wednesday said what it calls the underlying inflation rate continued to be around 1.5 to 1.7 per cent. It said total inflation would return to the 2.0 per cent target in the first quarter of 2017.

Fresh vegetables cost 11.5 per cent more and meat gained 4.4 per cent, leading a 3.5 per cent increase in the food basket.

On a month-over-month basis, headline inflation fell 0.2% in September, while core CPI rose 0.2%. Gasoline prices were down almost 19% in September compared with the previous year.