Statistics Canada released consumer price inflation data on Friday. Canadian consumer price inflation rose 0.2% in January, beating expectations for a 0.1% decline, after a 0.5% fall in December.

The monthly rise was mainly driven by an increase in food prices, which climbed 1.5% in January.

On a yearly basis, the consumer price index rose to 2.0% in January from 1.6% in December, exceeding expectations for a gain to 1.7%.

The consumer price index was mainly driven by higher food, and alcoholic beverages and tobacco products prices. Food prices climbed 4.0% year-on-year in January, while alcoholic beverages and tobacco products prices increased 3.1%.

The index for recreation, education and reading climbed by 2.2% in January from the same month a year earlier, the shelter index gained 1.1%, while energy prices dropped 0.4%.

The Canadian core consumer price index, which excludes some volatile goods, increased 0.3% in January, after a 0.4% fall in December.

On a yearly basis, core consumer price index in Canada climbed to 2.0% in January from 1.9% in December. Analysts had expected the index to remain unchanged at 1.9%.

The Bank of Canada's inflation target is 2.0%.