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.

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.


TradingEconomics.com, Statistics Canada
2/17/2012 7:14:14 PM