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The surprise uptick will certainly catch the attention of the central bank, but the recent rebound of the loonie to 73 cents U.S. should help temper prices for consumers, say economists.

“Given the strengthening in the currency since the Bank’s January decision, there is less likelihood that these pass-through effects intensify further,” said David Tulk, head of global macro strategy at TD Securities. “As a result, we see the Bank comfortable to remain on the sidelines in anticipation of the announcement of the fiscal stimulus.”

January’s upward move in prices was broad, with seven of the eight areas tracked by Statistics Canada seeing higher prices (only clothing and footwear registered a small decrease). Core prices, which exclude food and energy because they tend to be more volatile, also rose two per cent for the month.

Stronger prices complicate the picture for the Bank of Canada, which has loosened monetary policy in the past year by cutting interest rates from one per cent as of last January to the current 0.50 per cent mark. The moves have contributed to the weaker dollar, something the bank noted last month when Governor Stephen Poloz opted to keep the bank’s overnight rate unchanged.

“The combination of slowing growth and rising inflation is a trend that the Bank of Canada would not want to see continue,” said Tulk.

Canada’s dollar is currently trading at roughly 73 cents U.S. after falling to a 13-year low of just under 69 cents last month. The currency has been steadily retreating against its American counterpart since it was last at parity three years ago.