OTTAWA (AP) -- Consumer prices in Canada tumbled last month in their steepest one-month drop since 1959, as falling energy prices cut the annual inflation rate by almost a full point in September.
Statistics Canada reported Friday that Canada's inflation rate dropped to 2.6 percent from 3.4 percent in September.
The dive raises fears that Canada could be heading for a period of deflation, in which the economy shrinks and prices drop.
Consumer confidence has been shaken by fears of a global recession, leading to stock markets that plunged sharply in October.
(Copyright 2008 by The Associated Press. All Rights Reserved.)
To comment, the following rules must be followed:
Comments may be monitored for inappropriate content, but the station is under no legal obligation to do so.
If you believe a comment violates the above rules, please use the Flagging Tool to alert a Moderator.
Flagging does not guarantee removal.
Multiple violations may result in account suspension.
Decisions to suspend or unsuspend accounts are made by Station Moderators.
Questions may be sent to email@example.com. Please provide detailed information.