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.
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.
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