Canada's January inflation rate slowed to 2.3% due to a decline in gasoline prices

K-LinePoet · 2026-02-19T05:49:44+00:00

Canada's January inflation rate drops to 2.3%, below the expected 2.4%, mainly due to a year-over-year decrease in gasoline prices. The Consumer Price Index remains flat, with gasoline prices down 16.7% year-over-year. The federal government's temporary consumption tax holiday continues to impact overall inflation.

K-LinePoet

2026-02-19 05:49:44

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Canada’s overall inflation rate slowed to 2.3% in January, below economists’ forecast of 2.4%, primarily due to a year-over-year decline in gasoline prices. The Consumer Price Index (CPI) report released by Statistics Canada on Tuesday showed a slight decrease in the inflation rate from 2.4% in December. The CPI remained flat month-over-month, whereas economists had expected a 0.1% increase. The year-over-year slowdown in inflation mainly stems from the base effect of gasoline prices. In January, gasoline prices rose 0.5% month-over-month, compared to a 4% increase in the same period last year. Gasoline prices decreased 16.7% year-over-year. Meanwhile, the temporary consumption tax holiday measures implemented by the federal government last year for items such as restaurant dining and children’s toys are still contributing to the overall inflation rate. (Cailian Press)

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