April 21st, 2024

Canada’s inflation rate tumbled to 2.9% in January, grocery prices rise more slowly

By The Canadian Press on February 20, 2024.

Statistics Canada is set to release its January consumer price index report this morning. A shopper browses in an aisle at a grocery store In Toronto on Friday, Feb. 2, 2024. THE CANADIAN PRESS/Cole Burston

OTTAWA – Statistics Canada says the country’s annual inflation rate fell to 2.9 per cent last month.

The sharp decline comes after inflation ticked up to 3.4 per cent in December.

The consumer price index report says the largest contributor to the decline was lower gasoline prices on a year-over-year basis.

Price growth for groceries also decelerated significantly, rising 3.4 per cent annually in January compared with 4.7 per cent in December.

StatCan says on a seasonally adjusted basis, prices ticked lower between December and January, marking the first decline since May 2020.

The Bank of Canada’s preferred core measures of inflation, which strip out volatility in prices, also eased last month.

This report by The Canadian Press was first published Feb. 20, 2024.

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