Canada’s Inflation Rate Slows To 5.9 Percent
SAINT JOHN — Canada’s inflation rate slowed once again in January, according to Statistics Canada.
The Consumer Price Index (CPI) stood at 5.9 percent last month, down from 6.3 percent in December. But despite the continued slowdown, food prices continued to rise at a much faster pace than overall inflation.
Prices for food rose 10.4 percent year-over-year in January compared to 10.1 percent in December.
Grocery price acceleration was driven in part by year-over-year growth in meat prices (7.3 percent), bakery products (15.5 percent), dairy (12.4 percent) and fresh vegetables (14.7 percent).
Chicken prices rose nine percent in January compared with December, marking the largest monthly increase since 1986.
Food purchased from restaurants also rose at a faster pace, rising 8.2 percent in January following a 7.7 percent increase in December.
Meanwhile, the mortgage interest cost index continued to rise at a faster year-over-year pace amid the higher interest rate environment, rising 21.2 percent in January, the largest increase since September 1982.
At the same time, shelter prices increased at a slower rate year-over-year, rising 6.6 percent in January after a seven percent increase in December.
StatCan’s monthly report said prices for cellular services and passenger vehicles also contributed to the overall deceleration.
Cellular service prices fell 7.9 percent year-over-year in January followed a 2.5 percent increase in December.
StatCan said some Boxing Day sales remained available into January, leading to a decline when compared with the same month a year earlier.
Passenger vehicle prices increased at a slower rate year-over-year, up 6.2 percent in January compared to 7.2 percent in December.
Regional inflation numbers
Prices rose at a slower pace in January compared with December in all provinces except New Brunswick, where price growth for gasoline accelerated the most.
The inflation rate in New Brunswick rose to 6.5 percent from 6.3 percent in December.
Prince Edward Island (7.0 percent), Nova Scotia (6.9 percent) and Manitoba (6.9 percent) had the highest rates of inflation in January.
Ontario (5.6 percent), Newfoundland and Labrador (5.5 percent) and Alberta (5.0 percent) were the only provinces with inflation rates below the national level.
You can view the full report by clicking here.
Brad Perry is the Regional News Director for New Brunswick at Acadia Broadcasting, Huddle content partners.