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2026-02-17 21:38:42
[Canadian Inflation Slows to 2.3% in January, Core CPI Cools Simultaneously] ⑴ Statistics Canada released data on Tuesday showing that the Consumer Price Index (CPI) rose 2.3% year-on-year in January, a slowdown from December's 2.4% and slightly below market expectations. Month-on-month, the CPI remained unchanged. ⑵ Declining energy prices were the main factor driving the slowdown in inflation, with energy prices falling 10.9% year-on-year in January, a further widening of the decline from December's 8.8%. The core CPI, excluding food and energy, rose 2.4% year-on-year, also lower than the previous value of 2.5%. ⑶ Core inflation indicators monitored by the Bank of Canada all declined: the average annual CPI fell to 2.7%, the median CPI fell to 2.5%, and the cut-off mean CPI fell to 2.4%, all lower than in December. After seasonal adjustment, the core CPI rose 0.2% month-on-month in January, unchanged from the previous month. (4) Looking at the breakdown, goods prices rose 0.9% year-on-year (previous value 1.2%), while service prices rose 3.4% year-on-year (previous value 3.3%). The moderate decline in inflation data provides the Bank of Canada with more room for further policy adjustments. The market will focus on upcoming retail sales and other data to further assess the economic trend.
