April 20 (Reuters) - Canada's main stock index ended slightly higher on Monday as data showed the rate of inflation increasing less than expected, with gains for energy and technology offsetting declines for metal mining shares.
The Toronto Stock Exchange's S&P/TSX Composite Index ended up 13.74 points, or 0.04%, at 34,289.88 points, edging closer to the record closing high it posted on March 2.
Canada's annual inflation rate rose to 2.4% in March from 1.8% in February as higher crude oil costs drove up gasoline prices, but the rate was below the 2.6% level that analysts had forecast.
"Canada's inflation came in a bit cooler than expected, which was good news, especially when you strip out gasoline, which is a big driver of inflation in Canada," said Michael Dehal, a senior portfolio manager at Dehal Investment Partners at Raymond James.
Investors have worried that hotter inflation due to the oil price shock would lead the Bank of Canada to raise interest rates this year.
The price of oil settled 6.9% higher at $89.61 a barrel on uncertainty over peace talks between the U.S. and Iran, which helped lift the energy sector by 0.8%.
Technology was up 1.6%, with shares of BlackBerry Ltd jumping 13.1%, adding to sharp gains this month.
Three of the 10 major sectors lost ground, including materials, which includes metal mining shares. It was down 1.4% as gold prices fell.
Agnico Eagle Mines said it will acquire Rupert Resources and Aurion Resources, and buy a majority stake in a joint venture from B2Gold, as it moves to consolidate a key gold district in northern Finland. Shares of Agnico Eagle ended 1.9% lower.
(Reporting by Fergal Smith in Toronto and Tharuniyaa Lakshmi in Bengaluru; Editing by Sahal Muhammed and Deepa Babington)
By Tharuniyaa Lakshmi and Fergal Smith
