Monday, October 27, 2025

Consumer Inflation Slowed in January, But Grocery Prices Continue to Skyrocket

As widely expected, Canadian consumer prices continued their decline in January— albeit thanks to the base year effect, while grocery costs continued to skyrocket.

Latest data from Statistics Canada showed CPI rose 0.5% month-over-month to an annualized 5.9%, following last month’s figure of 6.3% and against forecasts calling for a print of 6.1%. The unexpected deceleration was due to the base year effect, as prices in January 2022 were significantly higher thanks to surging global energy prices and mounting tensions in Ukraine. Core CPI, which does not account for food and energy costs, rose 4.9% on an annualized basis, against economists’ expectations calling for an increase of 5.5%.

Contributing to last month’s CPI increase were higher gasoline prices as well as rising mortgage interest costs, which jumped 21.2%—the largest year-over-year increase since September 1982. Grocery prices, meanwhile, continue to skyrocket across the country, rising 10.4% compared to one year ago against December’s increase of 10.1%. On the contrary, lower passenger vehicle prices and cellular services costs added downward pressure on inflation.

Following January’s 25 basis-point interest rate hike, Bank of Canada Governor Tiff Macklem assured Canadians a conditional pause is imminent in order to assess the monetary impacts on the economy. Policy makers said they forecast GDP output growth to stall in the first nine months of 2023, while price pressures are expected to fall to around 3% in the second half of the year.

Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

The Best News for Gold Was the Drop! – Peter Grandich

McEwen Copper: The Los Azules Feasibility Study

This Is Why the Gold Run Is Not Done! | Peter Marrone – Allied Gold

Recommended

Steadright Enters MOU To Acquire Historic Goundafa Polymetallic Mine In Morocco

Military Seizes Power in Madagascar After President Flees

Related News

BMO: Bank of Canada Could Hike Rates as High as 6% to Tame Inflation

The Bank of Canada’s surprise colossal 100 basis-point rate hike signalled that inflation has become...

Wednesday, July 20, 2022, 12:22:00 PM

Analysis: The Stuck Supply Chain

Earnings season is upon us and, as analysts stare down previous quarters of growth numbers...

Monday, October 18, 2021, 03:30:00 PM

Canada’s Labour Market Sheds 17K Jobs in May

Canada’s labour market lost 17,000 jobs in May, bringing the unemployment rate to 5.2%— marking...

Friday, June 9, 2023, 08:37:44 AM

Brazil’s New President Doesn’t Want An Independent Central Bank

Brazil’s new left-leaning president Luiz Inácio Lula da Silva (Lula) doesn’t appear to be phased by...

Saturday, January 28, 2023, 09:00:00 AM

Consumer Prices Soared to Highest Since 2003 as Inflation Persists for 8th Consecutive Month

Consumers continued to pay substantially more for goods and services in November, as persistent inflationary...

Thursday, December 16, 2021, 04:36:00 PM