Canadian CPI: Soaring Even Higher

Canadian Inflation Update: December Figures

In December, consumer prices in Canada dropped by 0.2%. However, after adjusting for seasonal trends—since price reductions are common at year-end—this actually represents a 0.3% increase. The previous year's GST exemption on restaurant meals and select goods also played a role, contributing to a two-point rise in the overall inflation rate, which reached 2.4%. This figure slightly exceeded expectations, which had forecasted a 2.3% increase.

Despite the uptick in headline inflation, the report presented a mixed picture. Certain core inflation indicators, such as the median Consumer Price Index (CPI), showed signs of slowing. The median CPI remained unchanged on a seasonally adjusted basis for the month, causing the annual rate to dip by three points to 2.5%—matching its lowest level in several years.