Inflation cooled to 2.3% in January but food prices up again: StatCan

The annual rate of consumer inflation in Canada cooled slightly in January, according to the latest data, even as prices increased again — though at a slower pace  — for food and other essentials.

The consumer price index (CPI) was 2.3 per cent last month compared with a year earlier, according to Statistics Canada. That’s down slightly from December’s reading of 2.4 per cent.

CPI reports calculate the average rate at which prices change for consumers every month for all goods and services in Canada.

Food prices for items purchased in stores increased 4.8 per cent last month from a year earlier, which was down from five per cent in December.

Food purchased from restaurants increased 12.3 per cent in January compared with a year earlier, when the federal GST holiday was still in effect.

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From December 2024 to February 2025, Ottawa paused all federal sales taxes on restaurant meals and some grocery and alcohol items, as well as children’s clothing and footwear, diapers, toys, books and Christmas trees.

Since Statistics Canada compares prices with the same data from a year earlier, this means last year’s GST holiday may be clouding the most recent economic report.

– More to come