Consumers continue to feel sticker shock at the grocery store, gas pumps, and the bank, but Canada's inflation rate dipped to its lowest level since last February.
Statistics Canada released its monthly Consumer Price Index report on Tuesday, showing inflation in January dipped to 5.9 per cent, marking the seventh consecutive month of decline.
It is now the second lowest of the G7 nations.
Italy had the highest rate of the group at 10.1 per cent. In the United Kingdom, it was 8.8 per cent, 8.7 per cent in Germany, and 6.4 per cent in the United States. France's rate was 5.99 per cent.
Excluding food and energy, the inflation rate was 4.9 per cent.
Those with a variable mortgage rate saw their housing costs jump 21.2 per cent last month, the largest monthly increase since September 1982. That follows an 18 per cent jump in December.
Driving to work and back cost Canadians more in January as gas prices rose 4.7 per cent. Statistics Canada blamed the closure of a refinery in the Southwestern U.S. after winter storm Elliott slammed into Central North America. Overall, gas prices rose 2.9 per cent over the past year.
Prices at the grocery store also accelerated, up 10.4 per cent, a 0.3 percentage point climb from December. The cost of meat was up 7.3 per cent, the biggest increase since June 2004. Bakery products soared 15.5 per cent, and fresh vegetables cost 14.7 per cent more.
Building on December's 7.7 per cent increase for a meal in a restaurant, menu prices jumped another 8.2 per cent.
Canadians paid less for cellular services, 7.9 per cent less than a year ago, but buying a new vehicle costs more. Supply chain constraints continue to push up sticker prices, 6.2 per cent higher in January.
Statistics Canada points out that the Consumer Price Index growth slowed year over year in January because of the Base Year Effect. The term refers to price movement from one year earlier and its impact on the current month's inflationary rate.
"In the first half of 2022, the global economy was significantly affected by the Russian invasion of Ukraine, and Canadian consumers experienced a significant increase in prices from January to June 2022," read Statistics Canada's report. "Price increases observed in the first half of 2022 will continue to fall out of the 12-month movement. While inflation has slowed in recent months, prices remain elevated."