Energy prices push up Canada January inflation to 1.9%

Ottawa: Canada inflation rose 0.1 percentage points to 1.9 percent in January, led by higher gasoline and natural gas prices, the national statistical agency said Tuesday.

Although core inflation measures were "a little stronger than anticipated," commented CIBC Economics analyst Andrew Grantham, the overall prices hike was in line with forecasts.

Prices at the pump increased 8.6 percent year-over-year while natural gas cost 4.8 percent more.

These price increases were partly offset by lower prices for food and some consumer goods targeted by a recent temporary tax break, according to Statistics Canada.

The agency said the cost of buying new passenger vehicles edged up for the first time in eight months. Mortgage interest costs and rents, as well as property taxes also rose.

Canadians paid less for restaurant meals, alcoholic beverages, telephone services, air transportation, and toys and games.