Inflation in Canada rose 5.9% year over year in January, following a 6.3% gain in December, according to data released by Statistics Canada. .Prices for cellphone services and passenger vehicles contributed the most to the deceleration in the inflation rate, according to the Tuesday data. The data said mortgage interest costs and food prices continued to rise. .Prices rose 4.9% on a year-over-year basis excluding food and energy prices and 5.4% excluding mortgage interest costs in January. In these cases, year-over-year price growth slowed compared with December. .The data said gas prices contributed the most to the month-over-month increase in inflation, rising 4.7% in January. It added the price increase was related to refinery closures in the southwestern United States following Winter Storm Elliot. .On a year-over-year basis, gas prices rose 2.9% in January, decelerating from a 3% increase in December. .Cellphone service prices fell 7.9% on a year-over-year basis in January, following a 2.5% increase in December. Some Boxing Day sales remained available into January, leading to a decline when compared with the same month a year earlier. .Consumers paid 6.2% more for passenger vehicles in January following a 7.2% increase in December. Lower availability of new model-year vehicles in January compared with one year prior might be contributing to the year-over-year decline. .The data went on to say shelter prices increased at a slower rate, rising 6.6% in January after a 7% increase in December. It said growth in other owned accommodation expenses (1.1%) and homeowner replacement costs (4.3%) continued to decelerate amid the ongoing cooling of the housing market. .At the same time, the mortgage interest cost index continued to rise at a faster year-over-year pace amid higher interest rates, rising 21.2% in January, the largest increase since 1982. .The data said food prices rose at a slightly faster pace year over year in January (10.4%) than in December (10.1%). .The food item seeing the largest price increase was bakery products at 15.5%. .Subsequent to bakery products was fresh vegetables (14.7%). This was followed by dairy products (12.4%) and meat (7.3%). .Food purchased from restaurants rose at a faster pace, rising 8.2% in January following a 7.7% increase in December. The gain was a result of higher prices for fast food and takeout. .The Canadian Taxpayers Federation (CTF) demanded in 2021 the federal government take action to try and curb the rising cost of inflation. .READ MORE: CTF demands action on inflation.The call came after Statistics Canada reported prices rose by 4.7% in one year. .“Politicians keep talking about raising taxes, but we haven’t seen a plan showing how they’re going to make our lives a little more affordable,” said CTF Federal Director Franco Terrazzano.
Inflation in Canada rose 5.9% year over year in January, following a 6.3% gain in December, according to data released by Statistics Canada. .Prices for cellphone services and passenger vehicles contributed the most to the deceleration in the inflation rate, according to the Tuesday data. The data said mortgage interest costs and food prices continued to rise. .Prices rose 4.9% on a year-over-year basis excluding food and energy prices and 5.4% excluding mortgage interest costs in January. In these cases, year-over-year price growth slowed compared with December. .The data said gas prices contributed the most to the month-over-month increase in inflation, rising 4.7% in January. It added the price increase was related to refinery closures in the southwestern United States following Winter Storm Elliot. .On a year-over-year basis, gas prices rose 2.9% in January, decelerating from a 3% increase in December. .Cellphone service prices fell 7.9% on a year-over-year basis in January, following a 2.5% increase in December. Some Boxing Day sales remained available into January, leading to a decline when compared with the same month a year earlier. .Consumers paid 6.2% more for passenger vehicles in January following a 7.2% increase in December. Lower availability of new model-year vehicles in January compared with one year prior might be contributing to the year-over-year decline. .The data went on to say shelter prices increased at a slower rate, rising 6.6% in January after a 7% increase in December. It said growth in other owned accommodation expenses (1.1%) and homeowner replacement costs (4.3%) continued to decelerate amid the ongoing cooling of the housing market. .At the same time, the mortgage interest cost index continued to rise at a faster year-over-year pace amid higher interest rates, rising 21.2% in January, the largest increase since 1982. .The data said food prices rose at a slightly faster pace year over year in January (10.4%) than in December (10.1%). .The food item seeing the largest price increase was bakery products at 15.5%. .Subsequent to bakery products was fresh vegetables (14.7%). This was followed by dairy products (12.4%) and meat (7.3%). .Food purchased from restaurants rose at a faster pace, rising 8.2% in January following a 7.7% increase in December. The gain was a result of higher prices for fast food and takeout. .The Canadian Taxpayers Federation (CTF) demanded in 2021 the federal government take action to try and curb the rising cost of inflation. .READ MORE: CTF demands action on inflation.The call came after Statistics Canada reported prices rose by 4.7% in one year. .“Politicians keep talking about raising taxes, but we haven’t seen a plan showing how they’re going to make our lives a little more affordable,” said CTF Federal Director Franco Terrazzano.
