Canada’s annual inflation fell to 6.3%
2023.01.17 09:09
Canada’s annual inflation fell to 6.3%
By Tiffany Smith
Budrigannews.com – Statistics Canada reported on Tuesday that, primarily as a result of slower annual growth in gas prices, Canada’s annual inflation rate decreased to 6.3% in December, which was slightly lower than anticipated.
The headline inflation rate was expected to fall to 6.4% from 6.8% in November, according to analysts. Inflation decreased by 0.6% month-over-month, falling below analysts’ forecast of 0.5 percent.
According to Statistics Canada, consumers paid 13.1% less at the pump in December than in November, the largest monthly decline since April 2020. After rising by 13.7% in November, gasoline prices increased by 3% in December.
After rising by 5.4% in November, prices increased by 5.3% in December, excluding food and energy.
The headline figure for December is still more than three times the target of 2% set by the Bank of Canada.
The bank said that a decision to raise rates further would be more dependent on data after raising its benchmark interest rate by 400 basis points in nine months to 4.25 percent.
Following the release of the data, the Canadian dollar increased to 1.34 U.S. dollars, or 74.63 U.S. cents.
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