Trends in B.C. consumer prices kicked off 2025 diverging from the rest of Canada.
Inflation on the West Coast cooled to 2.2 per cent in January, according to Statistics Canada data released Tuesday.
That’s down from 2.6 per cent in December.
Meanwhile, the national inflation rate ticked upwards on a monthly basis, from 1.8 per cent to 1.9 per cent between December and January.
“The GST/HST holiday has officially ended and the downward pressure on overall inflation will unwind,” TD senior economist James Orlando said in a note.
He said the national rate of inflation would have been 2.5 per cent last month if not for the two-month tax holiday, which ended Saturday.
Both Orlando and RBC economist Abbey Xu said the Bank of Canada is still likely to await more data before making any decisions about its overnight rate. The central bank is next scheduled to make a rate announcement March 12.
BMO chief economist Douglas Porter said in a note he still expects the Bank of Canada to hold off on any rate cuts next month, “although developments on the tariff front may yet have a big say in that call.”
Potential 25 per cent U.S. tariffs on Canadian goods could go into effect March 4.
Nationwide, energy prices rose 5.3 per cent in January, with gas prices increasing 8.6 per cent. Natural gas prices rose 4.8 per cent following a 5.5 per cent decline in December.
