The annual inflation rate in Canada jumped to 3.4 percent in December, according to data released by Statistics Canada on Tuesday.

This came after inflation remained stable at 3.1 percent compared to last year in October and November.

StatsCan said that gasoline prices, air travel, cars, and rent contributed to the increase in December.

Food prices in stores also rose by 4.7 percent compared to last year, the same rate of increase as in November.

The data comes one day after a survey conducted by the Bank of Canada showed that Canadians are increasingly cutting back on spending, while mortgage holders remain confident in their ability to manage higher payments when renewing their loans.

Also, according to the central bank’s fourth-quarter consumer expectations and business outlook surveys, nearly two-thirds of Canadians said they have cut back or plan to cut back on spending due to their expectations for interest rates and inflation.