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Canada's Inflation Hits 1.9% Amid Rising Energy Costs

2/18/2025

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Summary

Canada's Inflation Rise

Canada's inflation rate rose to 1.9% in January, influenced by higher energy costs despite a GST tax break.
Gasoline prices increased by 8.6% year-over-year, with Manitoba experiencing a notable 25.9% rise due to a gas tax.
Core inflation measures indicate rising price pressures, prompting markets to lower expectations for interest rate cuts.
The Bank of Canada's policy rate remains at 3%, following six cuts, amid uncertainty from potential U.S. tariffs.

Summary

Nigeria's Inflation Drop

Nigeria's inflation rate dropped to 24.48% in January 2025, down from 34.80% in December 2024, due to CPI rebasing.
The rebased Consumer Price Index now uses 2024 as the base year, aligning with current consumption trends.
Urban inflation stands at 26.09%, while rural inflation is lower at 22.15%; food inflation decreased to 26.08%.
This new methodology enhances transparency and provides reliable economic indicators for policymakers.
Analysts warn that the lower rate reflects measurement changes, not necessarily falling prices.

History

Historical Context

Canada's rising inflation rate, influenced by energy costs, echoes the 1970s energy crisis. Back then, oil shortages led to skyrocketing prices and economic stagnation. Today's inflation reflects similar pressures, as markets adjust to energy volatility and potential U.S. tariffs, highlighting the persistent impact of energy on economies.

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Canada's Inflation Rise

Canada's inflation rate rose to 1.9% in January, influenced by higher energy costs despite a GST tax break.
Gasoline prices increased by 8.6% year-over-year, with Manitoba experiencing a notable 25.9% rise due to a gas tax.
Core inflation measures indicate rising price pressures, prompting markets to lower expectations for interest rate cuts.
The Bank of Canada's policy rate remains at 3%, following six cuts, amid uncertainty from potential U.S. tariffs.

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