Canadas inflation in January likely saw little change. Heres why – National [Video]

Economists expect little movement in Canada’s inflation numbers, if any, when January data is released this week, though the underlying change in prices will be clouded by a full month of the government’s GST break.

Statistics Canada’s consumer price index for the first month of 2025 is set to be released on Tuesday.

Canada’s annual inflation rate ticked down to 1.8 per cent in December, in large part because of the federal government’s pause on sales tax for an array of goods heading into the Christmas holidays. Restaurant food purchases and alcohol bought from stores contributed the most to the deceleration — both received the GST reprieve when it began on Dec. 14.

Without the tax break, however, Statistics Canada estimated inflation would have instead risen to 2.2 per cent from 1.9 per cent.

“The broader story is inflation is — even when you take out that special (tax break) factor — is close to …