Canadian inflation rises

Canada's annual inflation rate rose to 2.1 per cent in August from 1.8 per cent in July, as petrol prices continued their rapid rise, Statistics Canada said yesterday. It was the first time since March 1997 that inflation has topped the 2 per cent mark - the mid-point of the Bank of Canada's 1-to-3 per cent target range. Analysts shrugged off the price increases, focusing instead on the closely watched core inflation measure, which excludes food and energy prices. Core inflation dipped unexpectedly to 1.6 per cent in August, down from 1.7 per cent in July. Economists had expected the core number to remain at 1.7 per cent.