Statistics Canada reported on Friday the country’s consumer price index (CPI) rose 0.7 m-o-m in January, following a 0.1 percent m-o-m gain in the prior month.

On the y-o-y basis, Canada’s inflation rate increased 1.5 percent last month after a 1.4 percent gain in January. 

Economists had predicted inflation would increase 0.6 percent m-o-m and 1.4 percent y-o-y in February. 

According to the report, prices went up in all eight major components in the 12 months to February. The alcoholic beverages, tobacco products (+4.1 percent y-o-y), food (+3.2 percent y-o-y) and shelter (+2.4 percent y-o-y) indexes posted the biggest gains. Meanwhile, the transportation component (+0.1 percent y-o-y) recorded only marginal increase, as gasoline prices (-11.9 percent y-o-y) continued to be under pressure. However, it should be noted that the gasoline index in January recorded its first m-o-m increase since July 2018 as tighter oil supplies and the temporary closure of several refineries for seasonal maintenance affected prices at the pump. 

The closely watched the Bank of Canada's core index increased 1.5 percent y-o-y in February after gaining 1.5 percent y-o-y in the previous month.