Statistics Canada says Canada’s overall inflation rate eased slightly in January, but rising food costs continue to put pressure on household budgets.
The agency reported Tuesday that the annual inflation rate dipped to 2.3 per cent, down from 2.4 per cent in December and slightly below economists’ expectations. The decline was largely driven by lower gas prices, which were down 16.7 per cent year-over-year, and easing shelter costs as rent growth slowed.
However, those gains were offset by accelerating food inflation, which climbed to 7.3 per cent in January compared to 6.2 per cent the previous month.
Restaurant meal prices jumped 12.3 per cent year-over-year, while alcohol, children’s clothing, toys and games also posted notable increases.
Experts say other pressures, including the weaker Canadian dollar and lingering supply chain issues, are still working their way through grocery prices. Analysts at the Bank of Canada say higher import costs are playing a major role, especially for products like coffee and chocolate that are affected by global weather patterns and trade disruptions.
While inflation is cooling overall, economists warn it could take several more months before Canadians feel meaningful relief at the grocery store.