The Canadian inflation rate cooled more than expected in January, but food prices remained red hot.
Statistics Canada’s monthly Consumer Price Index on Monday showed last month’s overall inflation rate at 5.9%, down from the 6.3% increase posted in December and below analyst expectations for a 6.1% gain. However, food prices - including both groceries and food from restaurants – jumped 10.4% in January, slightly outpacing the 10.1% increase seen in December.
The cost of food purchased from grocery stores increased 11.4% in January, up from 11% in December, while food purchased from restaurants showed a month-over-month climb of 8.2% versus a 7.7% increase the previous month.
Grocery price acceleration in January was driven in part by a 7.3% year-over-year increase in meat prices, StatsCan said. Fresh or frozen chicken prices were a notable contributor to the gain, rising 9% in January compared with December, the largest monthly increase since September 1986. Additional acceleration was seen in year-over-year price increases for bakery products (+15.5%), dairy products (+12.4%) and fresh vegetables (+14.7%).
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