High gas prices may have curbed downward inflation trend in January: economists
CTV
Canada's annual inflation rate has been slowing since the summer, but economists are predicting that higher fuel prices in January may have hindered that trend.
Canada's annual inflation rate has been slowing since the summer, but economists are predicting that higher fuel prices in January may have hindered that trend.
Economists have been encouraged by recent month-to-month trends, which have shown prices have been rising at a slower pace.
However, TD is forecasting price growth accelerated between December and January.
"January is ... looking like it's going to be a little bit of a setback," said TD director of economics James Orlando, also noting that a one-month uptick "doesn't mean that February won't go back down to trend."
Statistics Canada is expected to release its consumer price index for January on Tuesday. The report will include last month's headline inflation rate, which compares prices to the same time last year.
Canada's annual headline inflation rate has fallen from its peak of 8.1 per cent seen in June to 6.3 per cent in December as gas prices have fallen, supply chain woes ease, and interest rates weigh on spending.
While TD is forecasting price growth accelerated between December and January, it is anticipating the annual inflation rate for January to come in at 6.2 per cent. CIBC is forecasting a slight increase to 6.4 per cent.
