Canada’s headline CPI eased from 2.4% yoy to 2.3% yoy in January, slightly below expectations of unchanged inflation. The moderation was largely driven by gasoline prices, which fell -16.7% yoy following a -13.8% decline in December. The sharper drop at the pump was the main contributor to the slowdown in headline inflation.
However, underlying price pressures remain more resilient. Excluding gasoline, CPI rose 3.0% yoy, unchanged from December. Excluding food and energy, inflation edged down modestly to 2.4% yoy from 2.5%.
Core measures were mixed but generally softer. CPI Median slipped to 2.5% yoy from 2.6%, while CPI Trim declined more sharply to 2.4% yoy from 2.7%. CPI Common eased to 2.7% yoy from 2.8%.
