February 17, 2026
RED FM News Desk
According to data released today by Statistics Canada, the country’s annual inflation rate fell to 2.3% in January. This cooling of consumer prices was primarily driven by a significant drop in gasoline prices, providing more relief to Canadians than many experts had anticipated.
Economists had widely predicted that the inflation rate would remain steady at the December level of 2.4%. However, the actual figures outperformed expectations. The agency reported that gasoline prices tumbled by 16.7% compared to the same month last year. Notably, when excluding volatile energy costs, the January inflation rate would have stood at 3%.
Grocery prices also saw a modest slowdown, with the food inflation rate easing to 4.8% from 5% in December. This shift was largely attributed to a price drop in fresh fruits, specifically berries, oranges, and melons.
Statistics Canada highlighted that the figures are currently influenced by the “base-year effect” of the 2024–2025 GST holiday. Because the federal government removed GST on items such as restaurant meals, alcohol, toys, and children’s clothing from mid-December 2024 to mid-February 2025, the year-over-year prices for these categories appear higher in January 2026.
In a landmark shift for the housing market, shelter price growth continued to moderate. The rate fell to 1.7% in January, marking the first time in five years that shelter inflation has dipped below the 2% threshold. Significant improvements in rental costs were specifically noted in Prince Edward Island and Saskatchewan.
Additionally, telecommunications costs saw a dramatic stabilization. The increase in cellular service rates plummeted to 4.9% in January, a sharp contrast to the 14.6% peak recorded just one month earlier in December.
Loading ...
