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

Comments are closed

Just Posted

Pubs accused of ‘negligently’ serving alcohol before Surrey traffic crash

The case concerns an Aug. 2, 2015 single-vehicle crash

Surrey mayor says Newton needs more recreation facilities

Surrey council has approved the “Stage 2 Final Report” of the Newton Town Centre Plan

Parallel crises: How COVID-19 has exacerbated the drug overdose emergency

Part 1: Surrey, White Rock officials say isolation, CERB, contributing to crisis

Surrey city staff hears restricting recovery homes to six clients won’t cut it

Corporate report notes there are more recovery homes in Surrey than in every other community in B.C. combined

Gravestones repaired at Surrey Centre Cemetery

Restoration now complete on seven pioneer grave markers vandalized in April

Police issue warning after baby comes across suspected drugs in Kamloops park

The 11-month-old girl’s mother posted photos on social media showing a small plastic bag containing a purple substance

Collision results in train derailment just east of Golden

The derailment occurred Sunday night, according to a statement from CP

Missing Fraser Valley man’s car found in Harrison

Michael Denham has been missing since June 27

Lower Mainland woman says llama farming neighbour shot her 11-month-old pup

Young dog was on owner’s Maple Ridge property when it was killed on June 21

B.C. records 31 new cases, six deaths over three days due to COVID-19

There are 166 active cases in B.C., 16 people in hospital

B.C. highway widening job reduced, costs still up $61 million

Union-only project scales back work to widen Trans-Canada

Most Read