Canada: Inflation ebbs in January from December
Latest reading: Consumer prices increased 2.3% in annual terms in January, following a 2.4% rise in the prior month. The reading was below market expectations and within the Central Bank’s 1.0–3.0% inflation target range.
Relative to the prior month’s data, there were milder price pressures for housing (+1.7% in annual terms vs +2.1% in December) and transportation (-1.8% vs -0.7% in December). In contrast, there were more notable price pressures for food (+7.3% vs +6.2% in December), recreation and culture (+1.0% vs +0.2% in December) and clothing and footwear (+0.6% vs +0.5% in December).
Meanwhile, core consumer prices increased 2.6% in annual terms in January, following a 2.8% increase in the prior month.
Lastly, consumer prices flatlined in January in month-on-month terms, following a 0.24% decline in the previous month.