Inflation Dips to 2.9% in January: Stats Canada

Statistics Canada reveals a 0.5% drop in the national inflation rate for January, largely attributed to reduced gas prices across the country.

Gas Prices Decline for Fifth Consecutive Month

Continued drops in gas prices, with a pause in the provincial gas tax in Manitoba, contribute to the overall reduction in inflation, marking the fifth consecutive month of decline.

Grocery Price Growth Slows, Food Inflation Cools

Price growth at grocery stores notably cools, with food inflation at 3.4% in January compared to 4.7% in previous months, reflecting broad-based decreases in various food items, including shrimp, prawns, soup, and bacon.

First Month-to-Month Decline in CPI Since Pandemic Onset

January marks the first month-to-month decline in the overall Consumer Price Index (CPI) on a seasonally adjusted basis since the onset of the COVID-19 pandemic nearly four years ago, signaling a potential shift in inflation trends.

Bank of Canada Eyes Inflation Trends Amidst Strong Labour Market

With core inflation easing and a resilient labour market, the Bank of Canada remains cautious about interest rate adjustments, analyzing data to determine potential cuts to its benchmark rate.

Housing Costs Continue to Rise, Shelter Inflation Climbs

Shelter inflation accelerates to 6.2% in January, driven by escalating rents and mortgage interest costs, posing ongoing challenges for consumers amidst the broader inflationary context.

Economists Weigh In on Monetary Policy

Economists suggest that the Bank of Canada may consider rate cuts in the coming months to address inflationary pressures and stimulate economic recovery, with shelter costs likely to rise regardless of policy adjustments.