While the overall Consumer Price Index was higher, some essential costs were lower
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Household budgets, already coping with increased debts, may be squeezed further if the cost of living continues its current trajectory.
The Consumer Price Index (CPI) was up 1% year-over-year in January according to new data from Statistics Canada, gaining from the 0.7% annual increase recorded in December 2020.
The largest drag on household finances was durable goods, which increased 1.7%; and gasoline, which was up more than 6%. Factoring-out gasoline, the CPI was up 1.3%, up from 1% in December.
Putting food on the table was more expensive than a year earlier with a 1.5% rise for meat and a 0.2% rise for fresh vegetables. But these costs grew at a slower pace than in December (2.5% and 1.1% respectively).
Households saw their electricity bills decrease from a year earlier with a 4.4% drop. Those in Ontario saw the largest cut at almost 14% thanks largely to the province setting all usage to the lower off-peak rate for 40 days from the start of the year.
Phones and autos
The cost of communicating increased in January with a 3.4% year-over-year increase in prices for multipurpose digital devices, including smartphones; and a 4.2% hike in the cost of cellular and landline phone services.
For those buying a new car, prices were up 2.9% year-over-year, increasing from the 2.5% rate in December, as new-year models were more costly than in January 2020.
Airfares were down 5.5% as travel advice continued to suggest only essential journeys.
Overall, Newfoundland and Labrador posted the largest increase in the CPI at 1.5% while Prince Edward Island saw prices grow at the slowest pace (0.5%).