Canada Taux d'inflation

The annual inflation rate inched higher to 1.9% in January of 2025 from 1.8% in the previous month, in line with market expectations. With the result, inflation remained at or below the Bank of Canada’s midpoint target of 2% for the sixth consecutive month, backing expectations that the central bank is likely to continue its loosening cycle. Inflation rose sharply for transportation (3.4% vs 2.3% in December 2024) as higher prices for oil and natural gas drove consumer gasoline costs to surge by 8.6% (vs 3.5%). Also, prices rose for passenger vehicles (0.4%) for their first annual increase in eight months. On the other hand, inflation remained unchanged for shelter (at 4.5%) and prices fell for food (-0.6% vs 0.6%) due to tax cuts on the sector. In the meantime, BoC core measures of the median and trimmed-mean rates were both at 2.7%, above their expectations. From the previous month, Canadian consumer prices edged higher by 0.1%.