Statistics Canada says higher shipping costs linked to global supply chain issues drove up the cost of food and in turn that was one of the main drivers for inflation in January in addition to housing and gasoline.

The annual inflation rate rose to 5.1 per cent in January. In December the increase was 4.8 per cent. The most recent update on the inflation rate is particularly notable because it is the first time in more than 30 ears that the annual pace of inflation has topped five per cent.

Gasoline prices were up 31.7 per cent last month compared with January 2021. If gasoline is detracted from the equation then Statistics Canada says the annual rate of inflation would have been 4.3 per cent in January.

Prices for groceries increased year-over-year by 6.5 per cent. That’s the largest yearly increase since May 2009 and Statscan says prices for beef, chicken and fish all rose faster in January compared with December. The cost of margarine and condiments were up by double-digits year over year.

Statistics Canada also says wage data from the Labour Force Survey found wages rose 2.4% during the same period, meaning that, on average, prices rose faster than wages and Canadians experienced a decline in purchasing power.

In two weeks the Bank of Canada will make an interest rate announcement.