Declines or slowed growth in the prices of gas, cellphone service, fresh fruit and shelter helped bring inflation down to 2.3 per cent in January compared to the previous year, slightly less than the 2.4 per cent rate posted in December, according to Statistics Canada. (The Logic)

Talking point: The drop came despite the fact restaurant meals, alcohol, toys and children’s clothing were all much more expensive in January 2026 than they were the same month last year, when Ottawa’s sales tax holiday was in effect. Removing the effect of such indirect taxes, the annual inflation rate was 2.05 per cent, “just a touch” higher than the Bank of Canada’s 2 per cent target, BMO chief economist Douglas Porter said in a note. Slowing inflation is a relief to households, but Statistics Canada’s annual review of inflation released last month showed costs have risen nearly 20 per cent since 2020, compared with a roughly nine-per-cent increase over the previous five-year period.