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January 2025 CPI Up 1.9% with Energy Prices as Key Driver

According to Statistics Canada, the Consumer Price Index (CPI) increased by 1.9% in January 2025 compared to the previous year. This follows a 1.8% rise recorded in December 2024. The CPI without gasoline also saw an increase of 1.7% in the same period.

Gasoline and natural gas prices were significant factors in the CPI increase, with gasoline prices rising by 12.9% from January 2024. The prices of food fell by 0.6% year over year, marking the first decline in food prices since May 2017, largely due to a 5.1% decrease in restaurant food prices.

The GST/HST tax break that started in December helped counterbalance some of the price rises. Statistically, the CPI rose by 0.1% from December 2024 to January 2025.

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