Sample tomatoes are seen at the Jean Talon Market, Monday, January 11, 2016 in Montreal. THE CANADIAN PRESS/Paul Chiasson

Inflation rises again, hitting 2.4% in January

Gas prices rose 11.2% due to events in Middle East and coronavirus outbreak

Statistics Canada says the annual pace of inflation in Canada jumped 2.4 per cent to start 2020, fuelled by higher costs at the gas pump and pricey tomatoes.

The move compared with a year-over-year increase of 2.2 per cent in December.

Economists had expected a reading of 2.3 per cent for January, according to a poll by financial markets data firm Refinitiv.

Gas prices in January increased 11.2 per cent compared with a year ago as prices rose at the start the month due to concerns about events in the Middle East only to move lower later in the month in response to the novel coronavirus outbreak.

Statistics Canada said Wednesday that excluding gasoline the year-over-year inflation rate would have been two per cent in January.

Costs grew for fresh vegetables by five per cent, largely attributable the agency says to a 10.8 per cent bump in the price of tomatoes stemming from inclement weather in growing regions of the United States and Mexico.

The overall increase in prices of 2.4 per cent compared with a year ago was also driven by increased mortgage interest costs, purchases of passenger vehicles, auto insurance premiums, and a bump in rents.

The increases were partly offset by lower prices for telephone services, internet access, tuition fees and traveller accommodation.

The average of Canada’s three measures for core inflation, which are considered better gauges of underlying price pressures and closely tracked by the Bank of Canada, was 2.033 per cent compared with 2.067 per cent for December.

Regionally, prices on a year-over-year basis rose more in January than December in every province except Ontario and Quebec.

READ MORE: Budget 2020: B.C. Liberals blast ‘Netflix tax,’ lack of economic plan

The Canadian Press

Like us on Facebook and follow us on Twitter

inflation

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

6.5-magnitude earthquake in Idaho shakes the Kootenays

An earthquake was reportedly felt just before 5 p.m. throughout parts of B.C. and Alberta

Avalanche blocked Highway 1 yesterday

Highway 1 over Rogers Pass was closed for most of the day

West Kootenay couple escapes Spain – safe, sound, and in self-isolation

BC couple Garrett Kucher and Tory Apostoliuk make it home after almost a week of lockdown in Spain

Social media a blessing and a curse during time of crisis: B.C. communication expert

‘In moments of crisis, fear is very real and palpable,’ says SFU’s Peter Chow-White

Interior Health officials outline pandemic response in virtual town hall

Kelowna-Lake Country MLA Norm Letnick moderates digital discussion, Q&A with Interior Health leadership

B.C. records five new COVID-19 deaths, ‘zero chance’ life will return to normal in April

Province continue to have a recovery rate of about 50 per cent

John Horgan extends B.C.’s state of emergency for COVID-19

Premier urges everyone to follow Dr. Bonnie Henry’s advice

B.C.’s first community COVID-19 death was dentist ‘dedicated’ to health: lawyer

Vincent was 64 when he died on March 22 after attending the Pacific Dental Conference

Two inmates at prison housing Robert Pickton test positive for COVID-19

Correctional Service of Canada did not release any details on the identities of the inmates

COVID-19 case confirmed at restaurant in Cache Creek: Interior Health

Customers who visited the site from March 25 to 27 are asked to self-isolate

BC SPCA launches matching campaign to help vulnerable animals after big donations

Two BC SPCA donors have offered up to $65,000 in matching donations

First COVID-19 outbreak in Interior Health identified at Okanagan agricultural business; 14 cases confirmed

75 workers are in isolation — 63 migrant workers and 12 local workers

Quarantined B.C. mom say pandemic has put special-needs families in ‘crisis mode’

Surrey’s Christine Williams shares family’s challenges, strengths

Anti-tax group calls for MPs, senators to donate scheduled pay raises to charity

Bill C-30, adopted 15 years ago, mandates the salary and allowance increases each calendar year

Most Read