Cost of living rises most in North, StatsCan finds

Consumer costs in northern Canada rose at twice the rate as elsewhere in the country in the past year.

Statistics Canada released the latest consumer price index (CPI) figures that show prices in Iqaluit rose just more than one per cent between January 2012 and January 2013. That's double the national price increase of just .5 per cent.

Yellowknife saw a CPI rise of 0.8 per cent, while prices in Yukon were up about 1.7 per cent.

Statistics Canada said the change in the index reflected higher prices for food, alcohol and tobacco, household expenses and recreation.

Gasoline prices dropped over the year in most of the country, which helped to balance other increases.

Statistics Canada tracks inflation through the CPI, a basket of about 600 goods and services the average Canadian household consumes. Most prices are checked during monthly visits to major retailers. Other prices are checked by phone or on the internet.

Nationally, about 650,000 prices are checked each year.