OTTAWA -
Canada's inflation rate continued to slide last month, dipping one-tenth of a point to 1.1 per cent as the falling cost of gasoline continued to drive overall prices downward.
The rising cost of food, up 7.3 per cent on an annualized basis, is now the key impediment to Canada's inflation rate from falling to zero.
Still, prices actually fell in January by 0.3 per cent from December, the fourth consecutive month-to-month drop in the overall cost of living, although the pace of decrease has slowed from October's 0.6 per cent dip.
And excluding food, overall prices in Canada would have slid into negative territory in January at 0.2 per cent over the previous year.
The Bank of Canada has forecast the rate is likely to fall below zero in the second and third quarters.
