Inflation has climbed sharply over two months. In November, the annual rate stood at 0.9 percent.
Gains in January were led by higher costs for shelter, which rose 2.1 percent after rising 1.9 percent in December.
Rent went up 1.6 percent in January. Electricity climbed 4.7 percent after a gain of 4.1 percent in December.
On the positive side for consumers, mortgage interest rate costs went down slightly, sliding 0.6 percent on a year-over-year basis.
Overall, however, prices went up in seven of the eight basic categories.
Prices were up 1.5 percent for alcohol and tobacco products, and more than one percent for food, clothing, and recreation. Prices rose more than 2 percent for transportation, StatsCan said.