Canada Inflation Rate Down to 0.5% in January

The Consumer Price Index (CPI) rose 0.5% in the 12 months to January, following a 0.8% gain in December.

The main factor in the smaller increase in the CPI was gasoline prices, which fell 1.8% year-over-year in January after rising 1.0% in December.

Consumer prices rose in six of the eight major components in the 12 months to January. The exceptions were transportation as well as clothing and footwear.

Food prices increased 1.1% on a year-over-year basis in January following a 1.5% advance in December. This slower rise was mainly attributable to easing price increases for food purchased from stores, notably meat. January's 0.6% year-over-year advance in the food purchased from stores component was the smallest since July 2010.

Shelter costs rose 0.6% in the 12 months to January, matching the increase in December. Rent and homeowners' replacement cost was up on a year-over-year basis. Conversely, mortgage interest cost decreased 4.2%.

Prices for transportation declined 0.5% in the 12 months to January, after increasing 0.5% in December. In addition to a year-over-year price decrease for gasoline, prices for the purchase of passenger vehicles fell 0.8%.

Prices for clothing and footwear fell 1.6% on a year-over-year basis in January following a 0.1% increase the previous month. The decline in clothing and footwear prices was attributable to more sale prices in January 2013 compared with January 2012.

Statistics Canada | Duarte Ricardo |
2/22/2013 1:40:44 PM