Core CPI (MoM) (Jan) 0.4% Previous -0.3%
Core CPI (YoY) (Jan) 2.1% Previous 1.8%
CPI (MoM) (Jan) 0.1% Forecast 0.1%
Canada's annual inflation rate edged up to 1.9%, slightly higher than December's 1.8%, primarily due to increased energy costs, notably gasoline and natural gas. The Consumer Price Index (CPI) rose by 0.1% month-over-month, aligning with forecasts. Core CPI, which excludes volatile items, increased by 0.4% from the previous month, reversing December's 0.3% decline, and reached 2.1% year-over-year, up from 1.8%. This uptick was partially offset by a temporary GST/HST tax break on certain goods and services, leading to a 0.6% annual decrease in food prices, the first decline since May 2017. The Bank of Canada, having recently cut its key policy rate to 3% amid concerns over potential U.S. tariffs, is closely monitoring these inflationary trends.