Statistics Canada said the consumer price index rose 2.9 per cent in January from a year earlier, the smallest increase since June. Gasoline prices fell and growth in food costs slowed markedly, outweighing another increase in shelter costs. (The Logic) 

Talking point: The Bank of Canada is determined to get headline inflation back to its target of two per cent. That target is the midpoint of a comfort zone of one per cent to three per cent, so seeing inflation drop back into that range brings psychological relief, if nothing else. It might also herald lower interest rates sooner than some expect, as it appears the central bank’s forecast of a steady decline in cost pressures this year is on track. Nothing cures inflation like more inflation because higher prices eventually destroy consumer demand. Prices for discretionary items such as airfare, furniture and clothing declined, not surprising given the economy stalled at the end of 2023.