Canada: Inflation falls in January
February 26, 2015
In January, consumer prices fell a seasonally-adjusted 0.2% over the previous month, which matched December’s result. According to Statistics Canada, the decrease came on the back of lower prices for transportation.
Annual headline inflation fell from 1.5% in December to 1.0% in January, thus recording the lowest rate in over a year. According to Statistics Canada, the deceleration was due to lower gasoline prices. As a result, inflation is now at the lower bound of the Central Bank’s tolerance margin of plus/minus 1.0 percentage points around its target of 2.0%. Annual average inflation was stable at December’s 1.9% in January. Annual core inflation, which excludes volatile items such as gasoline and fresh food, was also stable at December’s 2.2%.