A sharper drop in inflation in January is leading to further speculation that the Bank of Canada may consider dropping its interest rate sooner rather than later.

Last month, Bank of Canada Governor Tiff Macklem wouldn’t say whether interest rate drops are in the offing, but did say they’re shifting their focus from further restrictions to how long current rates will stand.

Inflation dropped to 2.9 percent in Canada in January, which is within the Bank of Canada’s objective of below three per cent.

Grocery prices continued to rise, although at slower rates than in the past.