Prices were up in all eight major components in the 12 months to January, with the transportation (+3.2 percent) and shelter (+1.4 percent, the same as in December) indexes contributing the most to the gain.
Consumers paid 3.2 percent more for transportation in January, following a 4.9 percent increase in December. Growth in this index was moderated by the purchase of passenger vehicles index, which increased less on a year-over-year basis in January (+1.4 percent) than in December (+3.7 percent). Gasoline prices rose 7.8 percent in January, after a 12.2 percent gain in December.
Food prices were 2.3 percent higher in January after rising 2 percent in December. This gain, the largest year-over-year movement in the food index since April 2016, was led by higher prices for food purchased from restaurants, which were up 3.7 percent in January after increasing 2.9 percent in December. Year-over-year growth in the fresh vegetables (+9 percent) and fresh fruit (+2.8 percent) indexes intensified in January.
The household operations, furnishings and equipment index rose 0.8 percent year over year in January after decreasing 0.3 percent in December. Prices for telephone services increased 6.5 percent on a month-over-month basis in January following a 7.6 percent decline in December, when a series of industry-wide price promotions took place.
On a monthly basis, consumer prices were up 0.7 percent, recovering from a 0.4 percent drop in December and above forecasts of a 0.4 percent increase. It is the highest monthly rate in a year.
The BoC's annual core inflation, which excludes volatile items, was flat at 1.2 percent