Canada’s inflation rate declined to an annualized 5.9% in January as rising interest rates continue to bring down consumer prices across the country.
The January inflation reading was down from an annualized 6.3% in December 2022.
Analysts polled by the Reuters News Agency had expected the annual rate of inflation in Canada to fall to 6.1% in January from December.
Statistics Canada said the Consumer Price Index (CPI) declined in January due to several factors, including lower prices for cell phones and internet service plans.
January’s inflation rate eased to 5.9% even as the prices Canadians paid for gasoline at the fuel pumps rose during the month.
Food prices also rose in January from December.
Canada’s annual inflation rate has been steadily declining since peaking at 8.1% last June.
The Bank of Canada has raised its trendsetting overnight interest rate multiple times over the past year to bring down overheated consumer prices.
The central bank’s overnight rate currently stands at 4.50%, its highest level since the 2008 financial crisis.
