Canada’s inflation numbers are out, and they’re raising eyebrows! While the January Consumer Price Index (CPI) came in at +2.3% year-over-year—slightly below the expected +2.4%—there’s more to the story than meets the eye. But here’s where it gets controversial: a sharp drop in gasoline prices (down 16.7% year-over-year) was the biggest factor in this undershoot. Strip out gasoline, and the overall CPI actually rose by 3.0% year-over-year, unchanged from December. So, is this report as dovish as it seems? Not quite. And this is the part most people miss: the lingering impact of the temporary sales tax break (GST/HST) continues to skew the data as it exits
