Inflation rate moderates slightly from December

Cost of gasoline driving prices up

Consumer costs in January were 2.3 per cent higher than in January 2010, down from a 2.4 per cent increase year-over-year in December, Statistics Canada reports.

On a monthly basis, January prices were 0.3 per cent above December 2010.

The driver of higher prices is energy costs, as it has been consistently in recent months. Gasoline was 13.0 per cent higher over the year in January.

Among major components, transportation prices jumped 4.8 per cent, and alcohol and tobacco 3.1 per cent. Clothing and footwear fell by 2.4 per cent.

Among provinces, Nova Scotia, at 3.0 per cent, and Ontario, at 2.9 per cent, led the country. Alberta, at 1.0 per cent, and Prince Edward Island, at 1.2 per cent, saw the smallest increases.

In the United States, the rate of inflation stands at 1.6 per cent, with energy also the principal source of the increase.

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