Higher gasoline prices helped push Canada’s annual rate of inflation up to 1.7% in June from 1.6% recorded in May, Statistics Canada reported today.

After a 1.6% decrease in May, gasoline prices returned to their upward trend, rising 4.2% between June 2004 and June 2005.

“Upward pressure was exerted primarily by gasoline, restaurant meals, homeowners’ replacement cost and property taxes,” Statistics Canada said.

“Moderating these increases were lower prices for computer equipment and supplies, natural gas and traveller accommodation,” the government agency said.

Core inflation, which excluding the eight volatile components identified by the Bank of Canada such as food and energy, rose by 1.5% between June 2004 and June 2005, a slight slowdown compared to the 1.6% rise recorded in May.