Canada's food prices fell for the first time since May 2017, providing a welcome relief to consumers. Despite this positive development, overall inflation saw a slight increase in January compared to December. Statistics Canada attributed the rise in inflation primarily to higher energy costs, particularly gasoline and natural gas. While the rate remains below the Bank of Canada's target of 2%, economists warn that retaliatory tariffs against the U.S. could potentially trigger a period of inflation.
Food prices in Canada declined for the first time since May 2017, although overall inflation in January rose slightly compared to December, Statistics Canada said. Canada 's inflation rate rose to 1.9 per cent last month, down one-tenth of a percentage point from December. However, inflation remained below the Bank of Canada ’s target of two per cent. Statistics Canada said the slight rise in inflation was led largely by Canadians paying more for energy in January. Energy prices rose 5.
3 per cent in January following a one per cent increase in December, driven by higher prices for gasoline and natural gas. The cost of transportation rose from 2.3 per cent in December to 3.4 per cent in January, while the cost of shelter remained steady at 4.5 per cent. However, there was good news for Canadians who ate out in January. Restaurant prices saw a record decline in January, with a 5.1 per cent decline. This led to a full percentage point drop in overall food prices. In December, food prices rose by 0.6 per cent. In January, they declined by the same amount – the first drop in food prices since May 2017. Royal Bank of Canada economists Nathan Janzen and Claire Fan had said Friday the GST/HST holiday, which lasted from December 9 to February 15, could affect the inflation readings for January. “The tax holiday will continue to muddy inflation readings until March when we can get a cleaner read of the consumer price index that are clear of distortions,” Janzen and Fan said in a report Friday. The RBC report said price growth continues to be disproportionately impacted by high growth in mortgage interest costs. While the inflation figures on Tuesday remained below the Bank of Canada’s two per cent target, the central bank warned that retaliatory tariffs by Canada and other nations against the U.S. could also cause a period of inflation. “While retaliatory tariffs would likely represent a one-time increase in the level of prices, members noted that, given the size of the shock, there was a risk that higher import prices could feed into other prices,” the report said. “If this leads to an increase in inflation expectations, it could generate higher ongoing inflation,” a Bank of Canada report said last week.
INFLATION CANADA FOOD PRICES ENERGY TARIFFS
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Melania Trump’s First Lady Portrait Gets Brutally Roasted And Compared To The One From 2017Melania's official first lady portrait is different from her previous one from 2017. “She looks mad at the world,” thought one social media user.
Read more »
Stars Turn Out for Trump's Second Inauguration, Drastically Different From 2017This time around, celebrities are embracing the occasion, a stark contrast to their absence at Trump's first inauguration eight years ago.
Read more »
Trudeau meets with families of victims of deadly 2017 Quebec mosque attackQUÉBEC — Prime Minister Justin Trudeau has met with the families of six men who were killed at a Quebec City mosque, days before the anniversary of the 2017 attack. Eight years ago, on Jan.
Read more »
Trudeau meets with families of victims of deadly 2017 Quebec mosque attackPrime Minister Justin Trudeau has met with the families of six men who were killed at a Quebec City mosque, days before the anniversary of the 2017 attack.
Read more »
This 2017 Flop Is A Top Movie On Netflix Right NowCaroline Bologna is a senior lifestyle reporter at HuffPost. Based in New York, she is a New Orleans native and graduate of Brown University.
Read more »
P.E.I. potato farmers want campaign to warn Americans that tariffs raise food pricesSome participants in Prince Edward Island’s potato industry say the time is ripe for a campaign in the United States to warn consumers that tariffs will hike their grocery bills.
Read more »