The Financial Post reports in its Wednesday, Feb. 19, edition that Canada's inflation rate rose to 1.9 per cent in January, driven by rising energy costs, despite a national GST holiday, according to Statistics Canada. The Post's Jordan Gowling writes that increased gasoline and natural gas prices contributed to the rise, with gasoline up 8.6 per cent year-over-year, particularly in Manitoba due to the reinstatement of the provincial gas tax. Natural gas prices also rose, climbing 4.8 per cent annually and 6 per cent monthly, with British Columbia seeing the largest increase. January inflation was up from the 1.8-per-cent increase recorded in December despite downward pressure on prices due to the temporary GST/HST break. Rosenberg Research's David Rosenberg says, "It remains to be seen just how much weight the bank will put on the data, given the heightened level of economic uncertainty and the prospect of tariffs ahead that could detonate the domestic economy." CIBC economist Andrew Grantham says he expects the Bank of Canada to lower the overnight rate to 2.25 per cent this year, but remains unsure of the path of cuts, given the uncertainty around tariffs. The BOC's policy rate currently sits at 3 per cent.