Rising energy costs pushed Canada’s inflation rate up to 1.9 per cent in January despite a national GST holiday, Statistics Canada said on Tuesday. The slight acceleration in both headline and core measures of inflation had markets trimming bets that the Bank of Canada will cut its policy rate next month.

Canada's annual inflation rate rose 1.9% in January, up from 1.8% in December as lower prices helped by a sales tax reprieve were partly offset by higher cost of gasoline and natural gas, data showed on Tuesday.

Canadian consumer prices reaccelerated for the first time in three months as the central bank’s preferred core measures are proving sticky.