Canada CPI Increases to 2.4% in January

The Consumer Price Index (CPI) in Canada increased to 2.4% in January, Statistics Canada (StatsCan) reported. Up from the 2.2% rise in December, the agency said the increase was due to higher gasoline prices at the beginning of January because of geopolitical uncertainties between the US and Iran, and concerns over the international supply of oil. Excluding gas, the annual rate of inflation increased by 2.0% for the month. On a seasonally adjusted monthly basis, the CPI edged up 0.1%.

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(Source: Statistics Canada)

Energy Index

The energy index rose 0.2% in January – Additionally, gasoline prices edged up 0.4%, from December.

Moreover, Statistics Canada said the uncertainties regarding the COVID-19 coronavirus outbreak and the global oil supply lead to the price decrease of oil. Statistics Canada said the price of gas soared 11.2% year-over-year from January 2019.

Regionally, the price of gasoline rose 6.6% in Alberta in January, on a year-over-year basis. StatsCan said that on January 1, carbon pricing was reintroduced in the province.

Since January 2019, the energy index surged 6.8%.

 Shelter Index

 In January, the shelter index rose 0.1%. From January 2019 to January 2020, this category increased by 2.4%.

(Source: Statistics Canada)

(Source: Statistics Canada)

Food Index

 The index for food increased by 1.1% in January. Fresh vegetable prices leapt 5.0% year-over-year, compared to the 1.5% rise seen in December. The agency stated that this was primarily due to a jump in tomato prices, which soared 10.8%, because of inclement weather experienced in growing regions in both the US and Mexico, StatsCan stated.

The all-items excluding food index increased 0.1% in January and rose 2.2% since January 2019.

 

Sarah Bauder

Sarah has been writing on the topics of politics, history and finance for over a decade. She is currently an editor at CPI Inflation Calculator, covering the topics of CPI, inflation, US economy and economic commentary.