Canada’s annual inflation rate fell to 2.3% in January
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Statistics Canada said Tuesday that Canada’s annual inflation rate fell to 2.3 per cent in January, driven downward by a decline in gasoline prices.
Economists were broadly expecting the rate to remain unchanged from December’s 2.4 percent.
Excluding gas, January’s inflation rate came in at three percent. Pump prices put pressure on the headline rate, which fell 16.7 percent in January compared to the same period last year.
Food inflation growth rate slowed slightly
According to StatsCan, grocery prices fell 4.8 percent in January from a year earlier after rising five percent in December.
The slowdown in price growth was largely driven by low prices for fresh fruits – particularly berries, oranges and melons, despite strong, stable harvests seen in growing regions.
The data agency noted that last year’s GST break, which ran from December 14, 2024, to February 15, 2025, is still impacting inflation data.
For example, restaurant prices in January 2026 were higher than a year earlier, because the GST break on those items was in effect at that time.
The same is true for alcohol purchased from liquor stores and other licensed establishments, as well as toys, games, hobby supplies, and children’s clothing.
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