Statistics Canada reported on Wednesday the country’s consumer price index (CPI) edged up 0.1 m-o-m in January, following a 0.1 percent m-o-m decrease in the prior month.

On the y-o-y basis, Canada’s inflation rate rose 1.4 percent last month after a 2.0 percent gain in December 2018. That was the lowest inflation rate since October 2017.

Economists had predicted inflation would increase 0.2 percent m-o-m and 1.5 percent y-o-y in January. 

According to the report, prices went in seven of the eight major components in the 12 months to January. The alcoholic beverages, tobacco products (+4.5 percent y-o-y), food (+2.8 percent y-o-y) and shelter (+2.4 percent y-o-y) indexes posted the biggest gains. Only transportation component (-0.7 percent y-o-y) recorded decrease, impacted by a tumble in gasoline prices (-14.2 percent y-o-y). That was the first 12-month decline in the index since July 2016.

Meanwhile, the closely watched the Bank of Canada's core index increased 1.5 percent y-o-y in January after gaining 1.7 percent y-o-y in the previous month.