By Fergal Smith Aug 12 (Reuters) - Canada's main stock index rose on Friday, extending the week's gains, as investors cheered signs of easing inflation pressures and two major telecom companies made headway with their merger deal. "It looks like inflation pressures are ebbing a little bit," said Elvis Picardo, portfolio manager at Luft Financial, iA Private Wealth. The spinoff comes at a time when Canada's antitrust agency has kept the Rogers' C$20 billion acquisition of Shaw on hold since May, citing competition concerns.