Canada’s annual inflation rate in January rose at a slower pace due to lower gasoline prices, with the consumer price index increasing by 2.3%, slightly lower than December’s 2.4%. Gasoline prices fell by 16.7% in January, offsetting higher prices in food and clothing categories.

Excluding gasoline, the CPI rose by 3% in January, while food prices increased by 7.3% and alcohol prices by 4.8%. Economists focus on core inflation, which rose by 2.4% in January, to gauge the actual rise in consumer prices.

The Bank of Canada’s preferred core inflation measures continued to ease, with shelter costs rising by 1.7% last month. The central bank has paused rate cuts at 2.25% as inflation remains stable around the mid-point of its target range.

Overall, the January data show a mixed picture of inflation in Canada, with lower gasoline prices offsetting higher prices in other categories. The central bank’s decision to pause rate cuts reflects its confidence in stable inflation at the mid-point of its target range.

Read more at Yahoo Finance: Canadian annual inflation rate edges down in January as gasoline costs drop