Canada’s annual inflation rate slowed to 5.9 percent in January, despite grocery prices rising at an even faster pace last month.
In its consumer price index report released Tuesday, Statistics Canada said the deceleration in headline inflation from 6.3 percent in December reflects a base-year effect.
A base-year effect refers to the impact of price movements from a year ago on the calculation of the year-over-year inflation rate.
Given much of the acceleration in price growth happened in the first half of 2022 as the threat of Russia invading Ukraine turned into a reality, the federal agency said the annual inflation rate will continue to slow in the coming months….