Canada Inflation Slows to 2.3%, Gas Prices Weigh Heaviest

Canada's headline inflation rate slowed to 2.3% last month, lower than economist expectations of 2.4%, due to a decrease in gasoline prices on a yearly basis.

The consumer price index (CPI) report released by Statistics Canada showed the rate edging down from 2.4% in December, while remaining flat on a monthly basis.

Economists surveyed by Bloomberg had predicted prices would rise 0.1% from a month earlier, but instead they remained unchanged.

The decrease in annual price growth is attributed to a gas price base-year effect, as prices at the pump rose 0.5% month-over-month in January compared to a 4% increase the same month last year.

Gasoline prices dropped by 16.7% on the year, contributing to the slowdown in inflation.