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Food inflation expected to jump in January amid tax changes: economists
January food inflation in Canada is driven by a one-time tax waiver effect and rising costs for staples like coffee and beef, with forecasts near 2.5%, economists say.
- The January consumer price index report will be published, with economists expecting a surge in food prices due to last year's tax changes, according to the Canadian Press.
- The tax holiday created a mechanical comparison effect, contributing to January food inflation amid rising supply costs, according to analysts.
- Desjardins' deputy chief economist Randall Bartlett noted rising grocery input and import costs, and said `Ultimately, uncertainty and change that's driven by policy often ends up costing consumers more,` highlighting the impact on food inflation.
- The Bank of Canada will review February inflation data before its March 18 decision, and Bartlett said `a one‑month headline uptick likely would not alter the central bank's view.`
- Capital Economics says shelter softness and past interest‑rate cuts may offset January CPI pressure, while analysts warn food inflation could surge above seven per cent.
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15 Articles
Coverage Details
Total News Sources15
Leaning Left7Leaning Right0Center3Last UpdatedBias Distribution70% Left
Bias Distribution
- 70% of the sources lean Left
70% Left
L 70%
C 30%
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