Canada's annual inflation rate ended a string of four months in negative territory as it hit 0.1 per cent for October, Statistics Canada said Wednesday.

The October figure was a sharp reversal from the negative 0.9 per cent annual rate seen in September.

The main factor in the turnaround was less downward pressure from gasoline prices, Statistics Canada said. Gasoline prices in October were 13.1 per cent below their level in October 2008, but that was a smaller change than the 23 per cent drop between September 2008 and September 2009.

Excluding energy, the consumer price index rose 1.4 per cent in the 12 months to October, slightly higher than the 1.3 per cent increase in September.

Higher year-over-year prices were seen for food, household operations, furnishings and equipment, and recreation, education and reading, Statistics Canada said.

But "grocery store price wars look to be heating up as we head into the holiday season, which should keep a lid on food inflation," BMO economist Sal Guatieri noted.

On a seasonally adjusted monthly basis, the CPI rose 0.4 per cent from September to October, after rising 0.1 per cent from August to September. The seasonally adjusted monthly CPI has gone up in five of the past six months.

"Excess capacity and the strong loonie should keep a lid on price pressures," Guatieri said. "Inflation concerns will remain on the back burner for a while."