Inflation dipped slightly in January to 2.3 per cent after reaching 2.4 per cent in December.
Statistics Canada released its Consumer Price Index report on Tuesday morning, showing that the increase in prices for gasoline, fresh fruit, and shelter costs decelerated.
After last January's GST/HST holiday, other goods, such as alcohol, children's clothing, toys, and restaurant meals, all increased.
A meal at a restaurant cost Canadians 12.3 per cent more last month, while alcoholic beverages increased by 7.9 per cent, toys, games and hobby supplies climbed 8.7 per cent, and children's clothing went up 6.3 per cent.
The price of gas was the largest contributor to January's deceleration in headline inflation. The cost at the pump fell 16.7 per cent year-over-year after December's 13.8 per cent decline. Without gasoline, headline inflation was 3 per cent.
At the grocery store, the cost of fresh fruit dipped 3.1 per cent after climbing 4.5 per cent in December. Overall, groceries went up 4.8 per cent year-over-year.
Shelter costs also decelerated in January, going up only 1.7 per cent, the first time in five years the increase was less than two per cent. The cost of rent rose 4.3 per cent, and mortgage interest costs were up 1.2 per cent year-over-year.
Canada's inflation rate was the second-highest of the G7 group of Nations. Only the U.S. rate was higher in January at 2.4 per cent. Germany's rate was 2.1 per cent, 2 per cent for Japan, and 1 per cent for Italy. The French inflation rate in January was 0.3 per cent, and the United Kingdom releases its inflation rate on Wednesday.
