The move compared with a year-over-year increase of 2.2 per cent in December.

An increase of 30 cents per hour is set to raise the province's minimum wage from $11.35 to $11.65.

Manitoba's minimum wage is about to increase by 20 cents. The adjustment is based on the province's 2017 inflation rate of 1.6 per cent and rounding up to the nearest five cents. 

The federal agency says the consumer price index for July was up 3.0 per cent on a year-over-year basis compared with a 2.5 per cent increase in June.

The upward forces on inflation last month were led by higher costs for gasoline and air transportation, while cheaper prices for video equipment, digital devices and electricity applied downward pressure.

The country's annual inflation rate once again rang in at 1.6 per cent last month as higher energy costs offset a seventh consecutive monthly decline in grocery prices.

Statistics Canada says the higher cost for transportation was the contributor to the higher inflation rate, with gas prices experiencing a 20.6 per cent boost compared to the year before.

Statistics Canada reports the annualized inflation rate in December was 1.5 per cent, up from November's rate of 1.2 per cent.

New Year, new household budget: The average Canadian family could spend a lot more for everyday items in 2017, thanks to a number of factors.

The country's annual inflation rate rang in under expectations last month at 1.2 per cent, largely because of lower food costs.