Canada's inflation rate cools to 2.3% as gas prices fall

Canada’s inflation rate slowed to 2.3 per cent year-over-year in January, down 0.1 per cent from the month before as gasoline prices fell.

Statistics Canada said Tuesday that gas prices were down 16.7 per cent in January and were the largest contributor to the slowdown in headline inflation. Excluding gas, the consumer price index (CPI) rose three per cent.

Restaurant meal prices were up 12.3 per cent, mainly because of the temporary GST/HST holiday in early 2025. Other tax-exempt goods such as toys, games, hobby supplies, children’s clothing and alcoholic drinks also rose.

Food prices rose 4.8 per cent annually, a slightly slower increase than in December as the prices of fresh fruit eased.

For the first time in almost five years, price growth for rents and mortgage interest costs was below two per cent. Shelter inflation came in at 1.7 per cent in January.

Excluding food and energy, the CPI increased 2.4 per cent in January compared to a year earlier.

More to come …