Statistics Canada reported on Wednesday the country's consumer price index (CPI) rose 0.3 percent m-o-m in January, following a flat m-o-m performance in the previous month.

On the y-o-y basis, Canada's inflation rate increased 2.4 percent last month, accelerating from 2.2 percent in December. That was the highest inflation rate since May 2019.

Economists had predicted inflation would increase 0.2 percent m-o-m and 2.3 percent y-o-y in January.

According to the report, gasoline prices drove the CPI increase in January, surging 11.2 percent y-o-y due to concerns over global oil supplies in response to international political events. Excluding gasoline, the CPI rose 2.0 percent y-o-y. Elsewhere, prices for fresh vegetables rose 5.0 percent y-o-y and costs of clothing and footwear increased 3.9 percent y-o-y.

Meanwhile, the closely watched the Bank of Canada's core index rose 1.8 percent y-o-y in January, following a 1.7 percent y-o-y gain in December. Economists had forecast an advance of 1.8 percent y-o-y.