Canada Inflation Slows Amid Gasoline Price Drop

Canada's inflation rate slowed in January due to falling gasoline prices, according to Statistics Canada. The Consumer Price Index rose 2.3%, with significant declines at petrol pumps. However, excluding gasoline, inflation remained steady at 3%. The Bank of Canada views this as stable, impacting future interest rate decisions.

Canada's inflation rate in January slowed to 2.3% from 2.4% in December as gasoline prices saw a significant drop, Statistics Canada reported Tuesday. This deceleration was mainly attributed to a 16.7% average plunge at petrol pumps.

Excluding gasoline, the Consumer Price Index (CPI) remained constant at 3% for January, indicating stable inflation in other essential categories such as food and clothing, where sales tax breaks from last year skew the comparison.

With the Bank of Canada signaling a pause on rate cuts and economists predicting stable inflation, market observers are keenly watching potential interest rate actions amid a stable economic climate.

(With inputs from agencies.)