Data from Statistics Canada has revealed that the country’s annual inflation rate has slowed to 2.9% in January, compared to the same month last year.

This marks a decrease in the pace of inflation since the Consumer Price Index (CPI) showed a 3.4% inflation rate in December 2023. 

The deceleration to 2.9% marks the first time since June 2023 that Canada’s inflation rate has fallen within the Bank of Canada’s inflation-control target range of one to three percent. 

While nine provinces’ CPI decreased between December and January, Alberta was the lone province with faster price growth, primarily due to an increase in electricity prices of 119.9%, up from an increase in December of just 22.9% compared to the previous year.

Saskatchewan had a CPI of 2.7% in December 2023. This decreased to 1.9% in January 2024. 

“In Saskatchewan, the collection of the carbon levy ceased in January 2024, contributing to the province’s year-over-year price decline of natural gas (-26.6%), said the organization. 

Saskatchewan Premier Scott Moe commented on the decrease in his province.

“The Trudeau carbon tax was over a quarter of the cost of natural gas in SK. If the feds are actually serious about fighting inflation, they would scrap the carbon tax on everyone and everything,” said Moe.

Statistics Canada reported that the largest contributor to the deceleration was lower year-over-year prices for gasoline in January, a decrease of 4%, compared with a 1.4% increase in December. 

Excluding gasoline, Canada’s CPI slowed to 3.2% year-over-year in January, down from 3.5% in December.

Price growth for food purchased from stores slowed in January to an increase of 3.4%, compared with the 4.7% increase in December. Lower prices for airfares and travel tours also contributed to deceleration.

Cellular service prices fell 16.4% in January year-over-year, following a 26.8% decrease in December since the year prior. However, monthly prices rose 6.7% in January compared to December, as prices returned to earlier levels following promotions in November and December.

On a seasonally adjusted monthly basis, the CPI fell 0.1% in January, the first decline since May 2020.

Despite the deceleration of inflation, Canadian Taxpayers Federation federal director Franco Terrazzano warns that the numbers show prices are still going up and told True North that Canadians are still struggling.

Prime Minister Justin Trudeau is making life more expensive, and in less than two months, he will be hiking carbon and alcohol taxes again, said Terrazzano.

“Trudeau isn’t even doing the little things to make life more affordable for taxpayers, like ending the upcoming tax hikes or taking the carbon tax off all farm fuels.”