Canada's CPI Lower-Than-Expected in January on Weaker Gasoline Prices

08:43 AM EST, 02/17/2026 (MT Newswires) -- The Canadian consumer price index rose 2.3% on a year-over-year basis in January, following a 2.4% increase in December, said the country's statistical agency on Tuesday.

January's CPI was lower than the 2.4% year-over-year consensus figure provided by MUFG.

The gasoline price index was the largest contributor to deceleration in headline inflation, with a larger decline in January compared with December, noted Statistics Canada in a statement. Excluding gasoline, the CPI rose 3.0% year over year in January, matching the increase in December.

Indexes with year-over-year movements impacted by the temporary GST/HST break in January 2025 continued to put upward pressure on the year-over-year all-items increase in January 2026, pointed out StatsCan. Of the affected indexes, the CPI continued to be most impacted by acceleration in prices for restaurant meals, and to a lesser degree, prices for alcoholic beverages, toys and children's clothing.

Excluding food and energy, the CPI rose 2.4% year over year in January, following a 2.5% increase in December.

The CPI was unchanged month over month in January on a non-seasonally adjusted basis, added StatsCan. On a seasonally adjusted monthly basis, the CPI increased 0.1% month over month.

The monthly and quarterly CPI reports, reported by StatsCan, measure the index level of prices paid by consumers for a basket of goods and services such as food, energy, vehicle, medical care, apparel, and housing. The core measure, which excludes food and energy due to their volatility, is closely watched by markets and the Bank of Canada as a sign of underlying inflation pressures.

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