Canada’s annual consumer inflation falls to 2.9% in January from 3.4% in December

On a seasonally adjusted monthly basis, CPI declined 0.1% in January, the first decline since May 2020, according to Statistics Canada.

Annual consumer inflation in Canada fell to 2.9% in January from 3.4% in December 2023, according to the country’s statistical authorities on Tuesday.

The consumer price index (CPI) came in below market expectations of 3.3%.

Furthermore, the rate has fallen significantly since its peak of 8.1% in June 2022, which was the highest level in 39 years.

The yearly reduction in inflation was mostly due to reduced fuel costs, which fell 4% in January after climbing 1.4% in December, according to Statistics Canada.

“Excluding gasoline, headline CPI slowed to 3.2% year over year in January, down from the 3.5% growth in December,” the agency said in a press release.

Price rise for food purchased in stores also slowed annually, with a 3.4% increase in January, down from 4.7% in December.

On a monthly basis, the CPI stayed steady in January, falling short of market expectations of a 0.4% increase after a 0.3% dip in December.

“On a seasonally adjusted monthly basis, the CPI fell 0.1% in January, the first decline since May 2020,” according to the report.