Statistics Canada says the consumer price index rose 1.0 per cent compared with a year ago as the annual pace of inflation picked up.

The reading compared with a year-over-year increase of 0.7 per cent in December.

Economists on average had expected a year-over-year increase of 0.9 per cent for January, according to financial data firm Refinitiv.

Fuelling the increase in January was rising gasoline prices that Statistics Canada says increased 6.1 per cent compared with December.

Still, gasoline prices were 3.3 per cent below where they were in January 2020 when the first hints of demand uncertainty hit global markets as COVID-19 began to spread.

Statistics Canada says that excluding gasoline prices, the consumer price index in January was up 1.3 per cent compared with a year ago.

The Canadian Press

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