Canada's annual consumer inflation slows to 2.9% in January from 3.4% in December

By Ovunc Kutlu

ISTANBUL (AA) - Canada's annual consumer inflation slowed down to 2.9% in January from 3.4% in December 2023, the country’s statistical authority said Tuesday.

The consumer price index (CPI) came in lower than market expectations of 3.3%.

The rate, in addition, reflects a significant slowdown since the 8.1% figure in June 2022 — its highest level in 39 years.

The annual deceleration in inflation was largely a result of lower prices for gasoline, which declined 4% in January after rising 1.4% in December, according to Statistics Canada.

"Excluding gasoline, headline CPI slowed to 3.2% year over year in January, down from the 3.5% growth in December," it said in a statement.

Price growth for food purchased from stores also slowed annually with a 3.4% gain in January, decelerating from an increase of 4.7% in December.

On a monthly basis, CPI remained unchanged in January, also coming in lower than market estimates of a 0.4% increase, following a 0.3% decline in December.

"On a seasonally adjusted monthly basis, the CPI fell 0.1% in January, the first decline since May 2020," said the statement.