Canada's annual inflation rate inched up to 1.9% in January from the previous month as higher gasoline and natural gas costs reduced the impact of a sales tax reprieve on broader consumer prices, official data showed on Tuesday.

Statistics Canada said energy prices contributed most to the acceleration, and were partially offset by the temporary tax break.

The annual inflation rate in Canada inched higher to 1.9% in January from 1.8% in the previous month, in line with market expectations.  The annual core inflation rate in Canada, which excludes components such as food,

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.