Inflation slows in January

Statistics Canada says inflation is now below three per cent.

The Consumer Price Index, a key measure of inflation, dropped to two-point-nine percent last month, largely due to lower prices at the gas pumps. Year over year, gasoline prices fell 4.0 per cent in January following a 1.4 per cent increase in December.

Price hikes at the grocery store are also slowing down. Food inflation dropped to 3.4 per cent last month, down from 9.1 per cent last June. Statistics Canada says the slowing of food inflation is happening across multiple food categories including meats, dairy, produce, and baked goods.

Canadians looking for a winter getaway are also in for some good news. Statistics Canada says the average price of airfare has dropped by 14.1 per cent since this time last year. On a monthly basis, prices fell in January by 23.7 per cent compared with December’s increase of 31.1 per cent.

Inflation data is a key factor for the Bank of Canada’s interest rate decisions, with the next rate announcement set for March 6th.

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