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

Surrey seniors call Seniors’ Centre Without Walls, a new-to-B.C. program

‘Crazy coincidence’ saw program connect soon after COVID-19 pandemic hit

Delta council approves plan to reopen city facilities

Next phase of plan includes outdoor pools, summer day camps, outdoor fitness programs

Education minister announces new South Surrey elementary school

Additions at two elementary schools also announced

White Rock reopens more waterfront parking

East Beach availability boosted for residents, public

March dental conference key to many of B.C.’s COVID-19 cases

Early infections from China, Iran were quickly contained

VIDEO: Pitt Meadows dentist gets grand welcome home after two-month COVID-19 battle

Michael Chow was given a surprise send off by hospital staff and ‘welcome home’ from neighbours

MAP: Dr. Henry reveals which B.C. regions have seen most COVID-19 cases

B.C. health officials release a first look at how the novel coronavirus has reached all corners of the province

Help the ‘Cloverdale Reporter’ continue its mission to provide trusted local news

Facing changes together: Your community, your journalists

Tla-o-qui-aht First Nation woman, 26, fatally shot by police in Edmundston, N.B.

Police were conducting a well-being check at the time of the incident

Stray dog with duct tape around muzzle spotted in Abbotsford

Pooch has been spotted over two days, but has escaped capture so far

Seniors to receive up to $500 in promised COVID-19 emergency aid in early July

The Liberal government first promised the extra help in mid-May, but had to create a new system to deliver the aid

VIDEO: Revelstoke bear wanders into Animal House pet store

Staff got ready to chase it out with a broom

No need to get out of your car at food truck festival in Abbotsford and Langley

Annual event takes drive-thru approach during COVID-19 pandemic

Most Read