Prices continued to rise in Canada in January, but at a slower pace and the annual rate of inflation fell from 6.3% in December to 5.9% in January, reports Statistics Canada.
At grocery stores and restaurants, however, prices rose at a rate of 10.4%, faster than in December (10.1%).
On a month-to-month basis, the Consumer Price Index was up 0.5%, following falling 0.6% in December. It is the increase in the prices of gas, meat and mortgage interest that explains this monthly increase.
Some prices are down, including cell phone services and motor vehicle services, reports Statistics Canada.
The decline in the annual pace of inflation is due to a year-over-year effort, says Statistics Canada, given that prices in 2023 compare to sharply rising prices a year ago. Inflation slowed in all provinces except New Brunswick. In Quebec, the rate went from 6.3% to 6.2%.
More expensive chicken
At the grocery store, the price of meat saw its largest month-over-month increase since June 2004. This was mainly due to the price of fresh and frozen chicken, which is up 9% month to month. Supply problems related to avian flu are part of the explanation for this price increase.
Price growth also accelerated for bakery products (+15.5%), dairy products (+12.4%) and fresh vegetables (+14.7%).
In restaurants, prices are up 8.2% annually, faster than last month (7.7%), particularly in quick service establishments.
Statistics Canada also reported that retail sales rose 0.5% in January, mainly due to car sales.
Core retail sales (excluding autos) rose 0.4% in January. In Quebec, retail sales are up 1.1%.