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The Bank of Canada in Ottawa, Ontario. (Photo: Brittanica)

Canadian inflation rate in January misses target

The Bank of Canada in Ottawa, Ontario. (Photo: Brittanica)

Consumer price inflation in Canada ticked up in January, while the average of the central bank’s core measures slowed down.

The overall consumer price index was up 2.4 per cent from a year earlier, after a 2.2 per cent gain in December. That beat economist expectations for 2.3 per cent increase. Excluding gasoline, inflation rose 2.0 per cent in January. On a monthly basis, inflation rose 0.3 per cent.

Core inflation — often seen as a better measure of underlying price pressure than the headline figure — edged down to 2.03 per cent, from 2.07 per cent in December. That missed economist estimates for 2.1 per cent.

Gasoline prices rose 11.2 per cent compared with January 2019, when oil prices were lower due to a global supply glut. (Photo:

Key Insights

  • Wednesday’s report was a mixed picture between headline and core measures. However, all indicators still track around the Bank of Canada’s 2.0 target, suggesting policymakers would need to look at other economic indicators when considering any change to interest rates.
  • Gasoline prices rose 11.2 per cent compared with January 2019, when oil prices were lower due to a global supply glut.
  • Fresh vegetable prices accelerated 5.0 per cent on the year, largely due to stronger annual growth in tomato prices and other vegetables due to inclement weather in the US and Mexico.
Fresh vegetable prices accelerated 5.0 per cent on the year, largely due to stronger annual growth in tomato prices and other vegetables due to inclement weather in the US and Mexico. (Photo: Unlock Food)

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  • Along with gasoline prices, passenger vehicle insurance premiums were a main upward contributor to the headline inflation figure, rising 8.4 per cent in January from a year ago
  • Telephone services dropped 7.1 per cent from the previous year, the largest downward contributor to annual inflation
  • The purchase price of passenger vehicles rose 2.3 per cent in January from the year prior, reflecting the release of new models
Staff from Markville Ford, an authorised dealer of Ford and Lincoln vehicles, in Ontario, Canada, pose for a photo. (Photo:

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  • Along with gasoline prices, passenger vehicle insurance premiums were a main upward contributor to the headline inflation figure, rising 8.4 per cent in January from a year ago
  • Telephone services dropped 7.1 per cent from the previous year, the largest downward contributor to annual inflation
  • The purchase price of passenger vehicles rose 2.3 per cent in January from the year prior, reflecting the release of new models.