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Canada's annual inflation rate edged down to 2.3% in January with decline in gas prices
Gasoline prices dropped 16.7% year-over-year and core inflation measures moved closer to the Bank of Canada's 2% target, Statistics Canada reported.
- Statistics Canada released January CPI data showing Canada's annual inflation rate slowed to 2.3% last month, edging down from December's 2.4%, the agency reported Tuesday.
- Falling gasoline prices contributed as a 16.7% year-over-year drop and the GST/sales-tax holiday continue to distort restaurant, alcohol and selected goods comparisons.
- Core inflation measures showed easing as the Bank of Canada's preferred core measures ticked down, with the median at 2.5% and trim at 2.4%, while grocery prices eased to 4.8% last month and shelter inflation slowed to 1.7%.
- Markets reacted, with the Canadian dollar touching C$1.3665 per US dollar and bond market yields dropping to session lows; Douglas Porter, chief economist at Bank of Montreal, called it an `encouraging result` for the Bank of Canada as the policy rate stayed at 2.25% last month.
- Economists expected stability but the data showed monthly CPI was flat despite a 0.1% forecast, while the Canada Groceries and Essentials Benefit and food banks help ease low-income pressures.
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NiagaraFallsReview.ca+6 Reposted by 6 other sources
Lower gas prices help keep Canada’s annual inflation steady at 2.3% in January, Statistics Canada reports
The inflation rate would actually be closer to three per cent if gasoline were removed from the Consumer Price Index.
·Niagara Falls, Canada
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Total News Sources13
Leaning Left10Leaning Right1Center0Last UpdatedBias Distribution91% Left
Bias Distribution
- 91% of the sources lean Left
91% Left
L 91%
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