Surging gasoline prices in September pushed up Canada’s annual inflation rate to 3.4%, Statistics Canada said today.

That’s up sharply higher from 2.6% annual rate recorded in August.

StatsCan said gasoline prices rose 10.8% last month.

“Higher crude oil prices, strong demand and uncertainty over future supply in the aftermath of hurricane Katrina pushed up prices at the pump,” the government agency said.

Since September of last year, gasoline prices have risen 34.7%. That increase has accounted for 1.5 percentage points of the 3.4% increase in the consumer price index.

Year-over-year inflation was also driven by higher fuel oil prices, higher car prices and more expensive home construction costs. It also cost more to eat out.

Those increases were partially offset by lower prices for computer equipment and supplies, StatsCan said.

Excluding energy, consumer prices rose at an annual rate of 1.6% in September, the same as August.

Core inflation, which excludes the eight most volatile items, remained at 1.7%, and below the Bank of Canada’s 2% target. The central bank pays particularly close attention to the core rate as it looks for signs that inflationary pressures are creeping into the rest of the economy.