Albertans saw Canada's annual inflation rate move in the wrong direction in January to 1.9 per cent.
According to Statistics Canada, increased energy prices, notably for gasoline and natural gas, contributed the most to the acceleration.
"These price increases were partly offset by continued downward pressure on prices for products affected by the goods and services tax (GST)/harmonized sales tax (HST) break introduced in December."
In December 2024, the annual inflation rate was a tick lower at 1.8 per cent. Here are the main upward contributors from month to month:
- Gasoline (4 per cent)
- Telephone services (6.8 per cent)
- Purchase of passenger vehicles (1 per cent)
- Fresh fruit (4.8 per cent)
- Natural gas (6 per cent)
Here were the main downward contributors month-to-month:
- Air transportation (-22.6 per cent)
- Food purchased from restaurants (-3.1 per cent)
- Travel tours (-5.8 per cent
- Traveller accommodation (-12.3 per cent)
- Alcoholic beverages served in licensed establishments (-2.2 per cent)
These are the main upward contributors comparing January 2024 to 2025:
- Mortgage interest cost (10.2 per cent)
- Rent (6.3 per cent)
- Gasoline (8.6 per cent)
- Passenger vehicle insurance premiums (8.2 per cent)
- Property taxes and other special charges (6.0 per cent)
"Compared with the same month one year earlier, energy prices rose 5.3 per cent in January following a one per cent increase in December, driven by higher prices for gasoline and natural gas," stated Statistics Canada.
In January 2025, natural gas prices increased 4.8 percent year over year after falling 5.5 percent in December. They also increased 6.0 percent month over month.
The Bank of Canada last lowered its benchmark key rate in January, bringing it down to three per cent. It has been on a downward decline since the summer.
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