The Globe and Mail reports in its Friday edition that the latest inflation report suggests the falling loonie is softening the blow of weak oil prices and keeping deflation worries at bay. The Globe's David Parkinson writes that Statistics Canada said Thursday its consumer price index rose 1 per cent from a year earlier in January, the slowest pace since November, 2013. BMO economist Douglas Porter says, "Aside from gasoline, there were few signs of weakness in Canadian price trends last month." After peaking at 2.4 per cent in October, Canada's inflation rate has been in rapid retreat. The January numbers have strengthened the market's new expectation that the Bank of Canada will hold steady on its key interest rate at its monetary policy decision next Wednesday. Financial markets were pricing in about a 75-per-cent likelihood the BOC would follow up its surprise January rate cut with a similar decrease next week. Following BOC Governor Stephen Poloz's comments Tuesday, the markets are now pricing in only a 20-per-cent chance the BOC will cut again on Wednesday. CIBC economist Nick Exarhos says the weak loonie should continue to prop up the core inflation number over the next several months.