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Five months of deflation, the longest spell reported in Canada since 1953, ended last month. Year-to-year inflation eased up 0.1% in October, bouncing into positive territory after September’s -0.9%. No matter how minute one-tenth of a per cent inflation appears to be, questions about the future still arise.

So what does this convey?

Giving no figures can sometimes be an improvement than the small amount of information these figures represent. September amounts were 0.1% higher when looking at each months figures in their own right. So are the figures going up, or down? The price index is the place to examine to locate the explanations to these questions.

Six out of the eight leading price index commodities (including food, shelter, and clothing) rose in October. But the biggest change was caused by the reducing gap of this year’s oil price in contrast to last year’s (along with other energy commodities). While in October 2008 oil prices were already declining from the summer spike, current prices are floating around the $80 level. Inflation jumped by 0.3%, if you take out other volatile energy-related components, which means more of our hard earned money on consumer items. Ontario noticed the largest inflation increase of all the Canadian provinces, which rose from -1.1% to 0.2%.

Read the rest of our original article Inflation Is Back to find out about the potential future trend of inflation in Canada.