The cost of living increased in January to the highest annual rate in more than a year, rising to 2 per cent, Statistics Canada said Friday.

The data agency reported that Canada's inflation rate is now at its highest level since October 2014. In December, the Consumer Price Index was 1.6 per cent.

Gas prices were the biggest contributor to the increase, as pump prices were more expensive in January than they were the same month a year earlier for the first time since the oil price slowdown that began in late 2014.

All provinces posted higher inflation rates. Newfoundland and Labrador and New Brunswick led the way with a rate of 2.4 per cent. Quebec had the lowest inflation rate at 1.6 per cent.