Canadian inflation pressures eased in January, leaving the Bank of Canada some room to hold interest rates at current levels next month even after a blockbuster jobs report.

The consumer price index rose 5.9% from a year ago, Statistics Canada reported Tuesday in Ottawa, slower than the 6.1% gain expected in a Bloomberg survey of economists and down from 6.3% in December. On a monthly basis, the index rose 0.5% in January, versus expectations of 0.7%.

The deceleration in inflation suggests policymakers have raised rates enough to restrain price gains, giving support to their decision to pause an aggressive rate-hiking cycle, at least in the near term.

Click here to learn more.