Canada's Inflation Eases as Gasoline Prices Plummet

Canada's inflation rate slowed to 2.3% in January due to a significant drop in gasoline prices, despite rising food and clothing costs. The consumer price index remained steady from the previous month, with gasoline prices falling 16.7%. Excluding gasoline, inflation stood at 3%. The Bank of Canada sees stable inflation, pausing rate adjustments.

Canada's annual inflation rate in January decelerated, aided by a notable drop in gasoline prices, according to Statistics Canada. Inflation rose 2.3% in January from December's 2.4%, surpassing analysts' expectations.

Gasoline prices, which fell by an average of 16.7% in January, played a key role in mitigating higher costs of food and clothing. Excluding gasoline, January's inflation rate matched December's 3% increase.

While food and alcoholic beverage prices rose significantly, core inflation metrics showed a slight easing trend. The Bank of Canada views inflation as stable, leading to a pause in interest rate adjustments at 2.25%.

(With inputs from agencies.)