Canada's annual inflation rate rose to a higher-than-expected 1.5% in January, powered by increased shelter, transportation and food costs. This from figures released early this morning by Statistics Canada.
That's up significantly from December's rate of 1.2%.
Economists had expected the inflation rate to edge up slightly to 1.3%.
Statistics Canada said seven of the eight major components of the consumer price index were up from a year ago. Higher electricity and insurance costs pushed up shelter costs. Rising gasoline prices increased transportation costs.
Gas prices jumped 4.6% in January and rose another 4.7% in December.
Core inflation, which excludes the most volatile items in the consumer price index, increased slightly to 1.4% last month. The core rate had been 1.3% in December.
The Canadian dollar was down 0.41 cents to 89.69 cents U.S.
In a statement accompanying its last interest rate decision in January, the Bank of Canada said it expected inflation to remain lower than previously anticipated for the next little while.
