Rising gasoline prices were a key reason Canada's inflation rate rose to 2.5 per cent in January, up from 2.3 per cent in December, Statistics Canada says.
Overall consumer prices rose by half a point last month, almost reversing a similar decline in December when they dropped 0.6 per cent, the agency reported.
Regionally, the rate of increase in consumer prices was highest in New Brunswick at 3.2 per cent and lowest in British Columbia, at 1.7 per cent.
Gasoline prices alone were up 2.8 per cent in January, with increases linked to the crisis in Syria and the nuclear standoff with Iran.
Inflation has been on a downward trend since the summer, but both the top number and the core rate, which excludes volatile items like gasoline, were up last month.
Inflation is now trending higher on energy, which rose per cent from January 2011, and food prices that were up 4.2 per cent in the same time period.
Excluding these two items, the inflation rate sits at 1.6 per cent, below the Bank of Canada's target rate of two per cent.
Analysts had expected the monthly and annual numbers to rise, but not by as much.
However, current inflation levels aren't expected to cause the central bank much concern, since the rate is projected to fall to about 1.5 per cent by mid-year.
Increases in most categories
Seven of the eight price components StatsCan tracks were up last month.
Transportation rose 3.7 per cent on an annual basis, shelter expenses increased by 2.1 per cent and household costs were also up, along with alcoholic beverages and tobacco.
The cost of bread was up 9.9 per cent on an annual basis, vegetables increased by 8.3 per cent and there was a 6.5 per cent hike in meat prices.
Declines in consumer prices were found in furniture, which dropped 3.6 per cent compared to a year ago, and video equipment, down 9.7 per cent. Mortgage interest costs and travel tours were also less expensive.
A rise in gasoline prices was the key reason Canada's inflation rate rose to 2.5 per cent in January, up from 2.3 per cent the previous month, Statistics Canada says.
Overall consumer prices rose by half a point last month, almost reversing a similar decline in December, the agency reported.
Gasoline prices alone were up 2.8 per cent in January.
Inflation has been on a downward trend since the summer, but both the top number and the core rate, which excludes volatile items like gasoline, were up last month.
Inflation is now trending higher on energy, which is up 6.5 per cent from January 2011, and food prices that rose 4.2 per cent in the last year.
Excluding these two items, the inflation rate sits at 1.6 per cent, below the Bank of Canada's target rate of two per cent.
Regionally, the rate of increase in consumer prices overall was highest in New Brunswick at 3.2 per cent and lowest in British Columbia, at 1.7 per cent.
