Canada's main stock index rose on Wednesday as a jump in oil prices lifted energy stocks to a two-month high, helping offset the impact from data showing the country's annual inflation rate surged to an 18-year high.

At 9:45 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index was up 39.46 points, or 0.19%, at 20,592.71, with the energy sector jumping 3.7% and rebounding from its worst session in nearly a month on Tuesday.

Data earlier in the day showed Canada's annual inflation rate accelerated to 4.1% in August, the highest since 2003 and up from the year-over-year increase of 3.7% in July.

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"Unlike the (US Federal Reserve), the Bank of Canada has been tapering (stimulus) throughout this year, so this just provides more evidence that they need to stay on the course," said Colin Cieszynski, chief market strategist at SIA Wealth Management.

Although the main Toronto stock index is up nearly 18% this year, the pace of gains has slowed in September as investors shun global equities amid a surge in COVID-19 cases and worries about a stunted economic recovery.

Industrial stocks rose 1.2%, led by a 3.6% jump in Canadian National Railway Co after the railroad operator scrapped its $29.6 billion offer for US-based Kansas City Southern.

The materials sector, which includes precious and base metals miners and fertilizer companies, gained 0.5%.

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Highlights

Oil and gas producer Crescent Point Energy Corp and real estate firm FirstService Corp were the largest percentage gainers on the TSX.

The TSX posted five new 52-week highs and two new lows.

Across Canadian issues, there were 19 new 52-week highs and seven new lows, with total volume of 53.96 million shares.