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Inflation in Canada reached two percent in January

Staff writer |
Statistics Canada said that the country's annual inflation rate reached two percent last month, its highest mark since November 2014.

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The January year over year inflation was up from 1.6 percent in December. The agency found that inflation climbed in every province last month at a time when the weaker exchange rate was contributing to higher costs for imported goods.

The effects of the steep decline in oil prices have played a big part in pushing down the loonie.

Last month, the overall cost of food was up four percent compared with a year earlier, with fresh vegetable prices up 18.2 percent and fruits up 12.9 percent.

A closer look at the data shows that lettuce prices last month were 17.9 percent higher than the year before, apples were up 16.6 percent and tomatoes up 11.9 percent.

Year-over-year prices moved upwards in every category of the index except for clothing and footwear, which saw a decrease of 0.3 percent compared with January 2015.

Lower prices in January for natural gas, fuel oil and telephone services kept downward pressure on the inflation reading. Natural gas was down 18.6 percent, fuel oil down 15 percent and telephone services 2.5 percent.

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