Canada's Annual Inflation Rate Up to 2.5% in January

Consumer prices rose 2.5% in the 12 months to January, led by increases for food and energy. The January rise followed a 2.3% increase in December.
TradingEconomics.com, Statistics Canada 2/17/2012 7:14:14 PM

Food prices rose 4.2% on a year-over-year basis in January following a 4.4% increase in December. In January, consumers paid 4.9% more for food purchased from stores and 2.8% more for food purchased from restaurants compared with January 2011.

The cost of energy advanced 6.5% in the 12 months to January, after rising 6.0% in December. Gasoline prices increased 6.8% in January. The electricity index rose 7.3%, with notable increases recorded in Alberta and Nova Scotia. Prices for fuel oil went up 17.1% while natural gas prices fell 0.7%.

Excluding food and energy, consumer prices increased 1.6% in the 12 months to January after rising 1.3% in December. The 0.3 percentage point difference was led by higher prices for the purchase of passenger vehicles.
12-month change: Prices up in seven of the eight major components

On a year-over-year basis, prices rose in seven of the eight major components in January, the exception being recreation, education and reading. Transportation and food continued to post the largest increases.


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