Inflation picks up slightly to 3.4% in Canada in December

Inflation picks up slightly to 3.4% in Canada in December

The Consumer Price Index (CPI) increased by 3.4% in December compared to the same period last year. As economists had predicted, the CPI rebounded slightly: it was 3.1% in November.

This acceleration in inflation in December comes after two months of relative stability in the yearCPI in November and October to 3.1%.

This acceleration in year-over-year inflation over the past month can largely be attributed to the price of gasoline, which rose 1.4% year-over-year in December, while falling 7.7% in November, Statistics Canada explains.

Excluding gasoline from the equation, inflation in Canada was +3.5% in December, down 0.1 percentage point from November (+3.6%).

Last month saw the biggest increase in airfares, jumping 31.1% compared to November, driven by increased travel during the holiday season.

Year-over-year prices continued to fall in December, but less than in November. Air transport prices fell to a lesser extent in December year-on-year (-9.7%) compared to November (-17.4%), putting upward pressure on L’Total CPIexplains Statistics Canada.

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