Inflation rate in Canada has slowed but that won't affect your grocery bill

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Here’s some good news: the annual inflation rate in Canada slowed down in January. The bad news? People will continue to feel the pinch at the supermarket as food prices continue to rise.

According to a recent report by Statistics Canada, compared to December’s 6.3% inflation, the rate has slowed to 5.9% in January. That’s an increase of just 0.9% compared to inflation rates in January 2022, when prices soared due to supply chain issues and the threat of a Russian invasion of Ukraine.

The report shows that high gas prices “contributed the most to the month-over-month increase, followed by a rise in mortgage interest cost and meat prices.”

“On a seasonally adjusted monthly basis, the CPI (Consumer Price Index) rose 0.3%,” reads the report.

Despite signs that inflation might be slowing, grocery prices remain high with Canadians paying a lot more for food.

“Food prices, which include both groceries and food from restaurants, rose at a slightly faster pace year over year in January (+10.4%) than in December (+10.1%),” reads the report.

Statistics Canada

Notable increases include meat, which is up 7.3% — the largest monthly increase since June 2004. Fresh and frozen chicken also rose 9% in January compared to December, the highest monthly increase since September 1986. Baked goods went up by 15.5%, dairy by 12.4%, and vegetables are 14.7% more expensive.

And you’re not imagining it — eating out has gotten more pricey. Fast food and takeout already increased by 7.7% in December, and in January that rose to 8.2%.

So what did get cheaper?

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Price growth for passenger vehicles has also slowed from 7.2% in December compared to 6.2% in January due to “ongoing supply chain constraints.”