Inflation Slows to 5.9% Despite Soaring Mortgage, Food Costs

The slower pace of growth in headline CPI was due to a base-year effect, StatCan said, which refers to the impact that price movements from a year ago have on the current month’s calculation.

Although gas prices rose 2.9% year-over-year in January, and were up 4.7% from December, a 7.9% annual decline in the cost of cellular services and an easing of passenger vehicle prices kept inflation at bay. Grocery prices proved unrelenting, rising 11.4% year over year in January to match a 40-year high. The increase was driven in part by a 7.3% yearly jump in the cost of meat, which was up from 6% in December. Annual acceleration was also seen in the cost of bakery products , fresh vegetables , and dairy products .

“Today’s CPI represents a rare downside surprise in both headline and core inflation, clearly a big step in the right direction,” Porter said.

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Inflation in Canada slows to 5.9%, leaving room for rate pause - BNN BloombergBoth inflation and key gauges of underlying price pressures eased in January, leaving the Bank of Canada some room to hold interest rates at current levels next month even after a blockbuster jobs report. Folks read the headline and think 🤔 We need inflation to be at 2 or less NOT 5.9 A long way to go down from 5.9 to 2 Inflation is not cool it is red hot and needs to go down down down to 2 or less , be honest and speak the truth Bloomberg
Source: BNNBloomberg - 🏆 83. / 50 Read more »