Consumer price index down one per cent in October; headline inflation 2.6 per cent

By The Canadian Press

OTTAWA - Canada's headline inflation rate tumbled to 2.6 per cent last month from 3.4 per cent in September.

On a month-to-month basis, consumer prices fell one per cent in October from September - the largest drop since June 1959.

The agency says gasoline was the primary reason for the sharp dip as the cost of filling up was 13.4 per cent lower in October than in September.

Food prices continued to rise in October, up 6.1 per cent from last year.

And mortgage costs were up 7.2 per cent, although the rate of increase eased.

The core inflation index - excluding volatile energy and food prices - remained at 1.7 per cent for the third straight month, below the Bank of Canada's two per cent target.