If the price of oil and energy goes down, why does CPI go up? Today, StatsCan revealed that Canada's CPI rose by 1.3%. They are attributing it to lower energy prices, led by the fall in the gasoline index (down 12.6% since one year ago).

From my understanding, an increase in Canada's CPI means Canadian goods/services cost more CAD to purchase.

But if energy has become cheaper, why are things overall becoming more expensive to purchase?
Canadian prices will tend to rise when energy prices fall because Canada tends to export oil and import other things. As a major oil exporter, a fall in the price of oil decreases the value of the Canadian currency— because foreigners have less need to purchase Canadian dollars with which to buy oil— causing other things to be more expensive to purchase (due to an increase in the prices of imported production inputs and finished goods).

Incidentally, this is why the Canadian Dollar is known as a commodity currency.