The rising price of gasoline helped push Canada’s annual rate of inflation up in April for the first time in six months.

Statistics Canada reported today that the consumer price index rose 1.7% between April 2007 and April 2008, up from a 1.4% increase in March.

That’s the first acceleration in the overall rate of inflation since November 2007.

In the wake of the inflation report, the Canadian dollar was trading higher. The loonie was up 0.69 of a cent at US101.52.

The higher cost for gasoline was the biggest factor in April’s inflation increase. The 12-month increase in gasoline prices was 11.6% in April, compared with a 7.9% increase posted in March.

Fewer incentives being offered by car manufacturers in April were also a factor in the rise in the inflation rate. Statistics Canada said the price of passenger vehicles fell 6.6% in April 2008 compared with the same month of the previous year, a smaller drop than the 7.1% decline in March.

Other factors putting upward pressure on the inflation rates included mortgage interest costs, fuel oil, home maintenance costs and baked goods.

Prices for fresh vegetables eased in April. Statistics Canada said fresh vegetable prices were relatively higher at this period last year when supplies were hit by a frost in California. The rise of the Canadian dollar may have also helped lower prices of imported vegetables.

Lower prices were also seen for women’s clothing and computer equipment.

The 12-month change in the Bank of Canada’s core rate of inflation rose to 1.5% in April, faster than the 1.3% increase in March. The core rate excludes fruit, vegetables, mortgage interest costs, tobacco, intercity transportation, natural gas, fuel oil and gasoline.

Across the country, Alberta and Saskatchewan recorded increases of 3.2%, which were the highest of all provinces. The increases were mainly because of higher new housing costs.

Meanwhile, the composite leading indicator rose 0.1% in April after no change in March.

StatsCan said only three of 10 components declined, the fewest since the turmoil erupted in global financial markets last summer.

The stock market posted the largest turnaround, rebounding in April and hitting a new record high this month after declining for five straight months.

Stock prices were buoyed by surging commodity prices and strength in the information-technology sector.

Household demand was sustained by further gains in spending on durable goods, offsetting a seventh straight decline for housing.

The leading indicator for the United States pointed to continued weakness, falling 0.2% for its eighth straight monthly decrease as housing and auto sales remained slow.

Canadian manufacturers recorded their first back-to-back gains in new orders since June 2007, despite slow auto and lumber exports to the United States.