Inflation slowed in January to 2.9 per cent, a better showing than many economists anticipated and within sight of the Bank of Canada's target of two per cent.
Canadians still paid more for food at grocery stores, but the rate at which prices increased slowed to 3.4 per cent after December's 4.7 per cent result.
The cost of bacon fell by 8.4 per cent. The price of meat rose 4.2 per cent, while bakery products increased by four per cent, and consumers paid 1.9 per cent more for fresh fruit.
The greatest impact on inflation in January was the price of gasoline. It fell four per cent compared to a year ago after rising 1.4 per cent in December.
Statistics Canada credited the drop to the baseline effect after gas prices rose in January 2023 when Winter Storm Elliott shut down refineries in the U.S.
Without gasoline, the rate of inflation in Canada was 3.2 per cent.
Typically, the cost of airfare drops in January, and it did last month by 14.3 per cent compared to 12 months ago after falling 9.7 per cent in December.
Canadians also paid less for cellular services. That fell by 16.4 per cent year over year after dropping 26.8 per cent in December.
Shelter costs continued to rise last month, increasing by 6.2 per cent from a year ago.
Inflation continued to fall in other G7 nations. January's rate in the United States and France was 3.1 per cent. It was four per cent in the United Kingdom, 2.9 per cent in Germany. Japan and Italy have yet to release their CPI report for January.
