OTTAWA – The annual inflation rate slowed more than expected in January, suggesting the Bank of Canada will stick to its decision to pause interest rate hikes as an overheated economy cools. In its consumer price index report released Tuesday, Statistics Canada said the deceleration in headline inflation to 5.9 percent in January from 6.3 percent in December reflects a base-year effect. A base-year effect refers to the impact of price movements from a year ago on the calculation of the year-over-year inflation rate. OTTAWA – The annual inflation rate slowed more than expected in January, suggesting the Bank of Canada will stick to its decision to pause interest rate hikes as an overheated economy cools.
In its consumer price index report released Tuesday, Statistics Canada said the deceleration in headline inflation to 5.9 percent in January from 6.3 percent in December reflects a base-year effect. A base-year effect refers to the impact of price movements from a year ago on the calculation of the year-over-year inflation rate. Extreme drought makes cattle farmers thin herds, which could cause future supply problems
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Consumer Price Index, January 2023
Given much of the acceleration in price growth happened in the first half of 2022 as the threat of Russia invading Ukraine turned into a reality, the federal agency said the annual inflation rate will continue to slow in the coming months.
The last time Canada’s annual inflation rate was below six percent was in February 2022 when it was 5.7 percent. The headline rate came in lower in January than many commercial banks were anticipating in their forecasts, signaling good news for the Bank of Canada. S.ctvnews.ca
Monday, April 20, 2026
