Did inflation ease in January? Here’s what economists expect
inflation rate has edged up and down over the last several months after dropping from its 2022 highs as global price pressures fade and the economy cools.Statistics Canada is set to release its January consumer price index report on Tuesday and forecasters expect Canada’s inflation rate fell. RBC, CIBC and TD all project the annual rate eased to 3.2 per cent, down from 3.4 per cent in December.Nathan Janzan, RBC’s assistant chief economist says the slowdown was likely driven by energy and food prices.“Gasoline prices were lower than a year ago in January and food price growth probably continued to slow on a year over-year-basis,” he said.“I think the attention will be more focused on the other components of CPI, just watching for signs that broader inflation pressures are continuing to slow, if only at a gradual pace.”As high borrowing costs cause consumers and businesses to pull back on spending, inflation is expected to slowly inch closer to the two per cent target by the end of the year.But unlike what’s typical when interest rates rise, the housing market won’t be helping the economy slow.
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