Inflation in this country slumped to its lowest in more than a year in January, as slumping oil prices continue to take a deep bite out of consumer prices.
Figures released this morning by Statistics Canada showed that its consumer price index (CPI) was up 1% from a year earlier in January, the slowest pace since November 2013. On a month-to–month basis, the CPI fell 0.2% in January from December.
The decline was again led by a sharp in gasoline prices, down 12.4% month over month, and down 26.9% year over year.
However, the core inflation rate, which excludes the eight most volatile components of total CPI including gasoline and other fuels, held steady at 2.2% – evidence that the energy price slump still isn’t having a deep impact on the country’s broader inflation picture.
Economists had expected inflation to show a drop of 0.4% on a month-to-month basis in January, and an overall inflation rate of 0.8%. They had anticipated core inflation of 2.1%.
