December reported slower inflation in Canada
According to Statistics Canada, the annual rate of inflation was down slightly to 6.3% last month, with gas prices reporting a significant monthly decrease.
The report says Canadians paid 13.1% less for their gas in December compared to November, which is explained by lower crude oil prices all over the world.
However, grocery prices were still high showing an annual increase of 11%. In addition to it, gains in mortgage interest costs, personal care supplies, and clothing offset the slowdown of the annual price growth.
The overall inflation rate was slightly lower than experts had expected. Economists polled by Bloomberg predicted a 6.4% increase of the consumer price index.
If we exclude food and energy from calculations, December annual prices growth will be 5.3%, the report says.
Although inflation remains notably higher than the central bank’s 2% target, December was another month with slower price growth after the inflation rate skyrocketed to 8.1% last August.
The Bank of Canada’s next rate meeting is on January 25, and one more rate hike by 0.25% is widely expected.