Canada’s inflation rate slowed once again in January, according to Statistics Canada.
The Consumer Price Index (CPI) stood at 5.9 per cent last month, down from 6.3 per cent 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 per cent year-over-year in January compared to 10.1 per cent in December.
Grocery price acceleration was driven in part by year-over-year growth in meat prices (7.3 per cent), bakery products (15.5 per cent), dairy (12.4 per cent) and fresh vegetables (14.7 per cent).
Chicken prices rose nine per cent 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 per cent in January following a 7.7 per cent 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 per cent 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 per cent in January after a seven per cent 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 per cent year-over-year in January followed a 2.5 per cent 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 per cent in January compared to 7.2 per cent 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 per cent from 6.3 per cent in December.
Prince Edward Island (7.0 per cent), Nova Scotia (6.9 per cent) and Manitoba (6.9 per cent) had the highest rates of inflation in January.
Ontario (5.6 per cent), Newfoundland and Labrador (5.5 per cent) and Alberta (5.0 per cent) were the only provinces with inflation rates below the national level.
You can view the full report by clicking here.
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