Statistics
Canada reported on Tuesday the country’s consumer price index (CPI) fell
0.4 per cent m-o-m in December
2024, following an unrevised flat m-o-m performance in the previous month. This was the first monthly drop
in CPI in three months.
On a y-o-y
basis, Canada’s inflation rate rose by 1.8 per cent last month, decelerating slightly from an unrevised 1.9 per cent in November 2024. This represented the weakest annual inflation rate since September 2024 (+1.6 per
cent).
Economists had anticipated
CPI would decline 0.4 per cent m-o-m and increase 1.9 per cent y-o-y in the
final month of 2024.
According to
the report, food purchased from restaurants and alcoholic beverages purchased
from stores contributed the most to the December slowdown in the headline
annual inflation.
Meanwhile, the
monthly decrease in the headline CPI reflected declines in 6 of all 8 major
items, led by clothing and footwear (-3.0 per cent m-o-m), food (-1.8 per cent
m-o-m), and household operations, furnishings and equipment (-1.1 per cent
m-o-m). These decreases were partly offset by gains in transportation
(+1.8 per cent m-o-m) and shelter (+0.3 per cent m-o-m).