Inflation falls to 2.3% in January while food prices rise, StatCan reports

Statistics Canada reports the consumer price index was 2.3% year-over-year in January, down from 2.4% in December; food bought in stores rose 4.8% compared with a year earlier.

Statistics Canada says consumer inflation in Canada eased slightly in January while some essentials continued to cost more. The CPI was 2.3 per cent compared with a year earlier, down from 2.4 per cent in December. Food prices for store-bought items rose compared with a year earlier, and restaurant meal prices showed a larger increase. The report notes that a federal sales-tax pause in the prior year affects direct year-over-year comparisons. Key figures: - Consumer price index (CPI) was 2.3% year-over-year in January 2026. - December's CPI reading was 2.4% year-over-year. - Food purchased in stores increased 4.8% compared with a year earlier, down from 5.0% in December. - Food purchased from restaurants rose 12.3% year-over-year in January, a period that is compared with months when a federal GST holiday was in effect. - From December 2024 to February 2025, the federal government paused sales taxes on certain restaurant meals and selected grocery and consumer items, which affects the year-over-year comparison. Summary: The data shows modest easing in overall consumer inflation while food costs remain elevated, especially for restaurant meals. Undetermined at this time.