Inflation back up to 1.9% in January after rise in gas prices

By Canadian Press on February 18, 2025.

OTTAWA — Canada’s annual inflation rate ticked back up in January to 1.9 per cent, thanks to a spike in gas prices to start the year.

While Statistics Canada’s consumer price index report today showed relief in prices from the federal government’s tax break, the jump in gas prices offset it.

Prices at the pump rose 8.6 per cent in January compared with a year ago, thanks in large part to Manitoba reintroducing its provincial gas tax after a pause in 2024.

Without the federal government’s tax break, the annual inflation rate would have jumped to 2.7 per cent, compared with 2.3 per cent in December.

With consumer prices getting a full month of the tax break through January, restaurant prices dropped 5.1 per cent from a year ago.

The tax break ended over the weekend.

This report by The Canadian Press was first published Feb. 18, 2025.

The Canadian Press

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