Higher prices at the pump contributed to a one per cent jump in the Consumer Price Index in January 2021 compared to 12 months ago. (Graham Hughes/The Canadian Press)

Higher prices at the pump contributed to a one per cent jump in the Consumer Price Index in January 2021 compared to 12 months ago. (Graham Hughes/The Canadian Press)

Higher gas prices led to higher January consumer prices in Canada

Prices for other goods including food also rose, but at a slower pace

New figures show a financial squeeze at the pumps as higher prices for gasoline and other consumer goods led to accelerated inflation in January.

The Consumer Price Index (CPI) rose 1 per cent in January compared to the same period in 2020, according to Statistics Canada, with higher gasoline prices (up 6.1 per cent compared to December 2020) combining with higher prices for other goods.

This increase, the second in as many months, coincided with production cutbacks by major oil-producing countries responding to local global demand for crude oil.

Gas prices were 3.3 per cent lower than January 2020, as the global outbreak of COVID-19 heightened demand and uncertainty in the oil and gas market.

RELATED: Canadians paid more for food and housing in October as inflation rose

Statistics Canada also found that Canadians paid more for vehicles (up to 2.9 per cent), phones (up 3.4 per cent) and phone plans (up 4.2 per cent).

Prices for meat and vegetables also rose in January, but at a slower pace thanks to good harvests in the United States and Mexico as well as the diversion of food from the food service sector toward retail.

Looking at regional data, British Columbians experienced slightly higher inflation than Canada as a whole at 1.1 per cent in January, while neighbouring Alberta’s inflation rate of 0.8 per cent was below the national figure.


Do you have a story tip? Email: vnc.editorial@blackpress.ca.

Follow us on Twitter and Instagram, and like us on Facebook.

wolfgang.depner@peninsulanewsreview.com

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

Just Posted

A nurse performs a test on a patient at a drive-in COVID-19 clinic in Montreal, on Wednesday, October 21, 2020. THE CANADIAN PRESS/Paul Chiasson
Interior Health reports 16 new COVID-19 cases

423 cases remain active in the region

Vaccines are expected to become more widely available as the rollout speeds up in B.C. Olivia Sullivan/Sound Publishing
Sleeves up Golden – vaccine rollout details released

More details about the provincial rollout were released yesterday

A man wearing a mask against coronavirus walks past an NHS advertisement about COVID-19 in London, Tuesday, Feb. 2, 2021. (AP Photo/Alastair Grant)
92 new COVID-19 cases, no new deaths: Interior Health

The region is reporting 92 cases after the weekend

Gas prices jumped in Golden to 131.9c this week, a trend that’s supposed to continue into the summer. (Claire Palmer/Golden Star)
Columbia River-Revelstoke MLA Clovechok concerned as gas prices continue to rise

Fuel prices are supposed to skyrocket this summer as British Columbians await BCUC analysis

(PQB News file photo)
CSRD makes changes to yard waste tipping fee

The change will help standardize tipping fees for yard waste

The Independent Investigations Office of B.C. has cleared the Lumby RCMP of any wrongdoing after a missing person was found deceased in December 2020. (IIO photo)
Police watchdog says North Okanagan RCMP played no role in missing person’s death

The body was found by a family member shortly after the RCMP suspended their search

The area on Cordova Bay Road where ancestral human remains were discovered Feb. 22. (Submitted photo)
Human remains discovery a reminder of B.C. Indigenous culture dug up and displaced

‘These are the people who inspired and birthed the generations that we now have here’

The images are of Bald Eagles feeding.
Photos: Birds of prey

Princeton photographer captures compelling photos of a Bald Eagle breakfast

HOPE Okanagan’s Stay at Home Gala will raise funds to help serve Kelowna and Vernon’s vulnerable. (HOPE Okanagan)
Non-profit hosts virtual gala to support Okanagan’s vulnerable

HOPE Okanagan wants to raise awareness and support for those struggling in the streets

Older rental apartments are prime candidates for renovations, and could result in lost affordable housing stock. (Zoë Ducklow photo)
B.C.’s renoviction overhaul a good start, but won’t preserve affordable stock, lawyer says

And still no protection for people who can’t pay rent due to COVID-19

An off-duty Vernon Taxi driver got a 24-hour licence suspension, vehicle towed, after failing a standardized field sobriety test around 1:40 a.m. Tuesday, March 2, 2021. (John E Green - Facebook)
Vernon Taxi towed after driver suspected impaired

Off-duty cab towed from McDonald’s drive-thru early Tuesday morning

Kamloops This Week
Cause of Kamloops landfill fire may never be known

Fire investigators are dealing with too much destruction in too large an area

Most Read