Canada annual inflation rate falls to 6.3% in December on gasoline

Canada annual inflation rate falls to 6.3% in December on gasoline

OTTAWA (Reuters) – Canadas annual inflation rate eased to 6.3% in December, slightly lower than expected, mainly due to slower yearly growth in gas prices, Statistics Canada said on Tuesday.

Analysts had expected the headline inflation number to fall to 6.4% from 6.8% in November. Month-over-month, inflation was down 0.6%, again lower than analysts forecast of a 0.5% fall.

Consumers paid 13.1% less at the pump in December compared with November, the largest monthly decline since April 2020, Statistics Canada said. On a yearly basis, prices for gasoline rose 3% in December after a 13.7% increase in November.

Excluding food and energy, prices rose 5.3% in December after a 5.4% rise in November.

December‘s headline figure is still more than three times the Bank of Canada’s 2% target.

The bank has raised its benchmark interest rate at a record pace of 400 basis points in nine months to 4.25% and said a decision to raise rates further would be more data-dependent.

The Canadian Dollar strengthened to 1.34 per U.S. dollar, or 74.63 U.S. cents, after the data.

(Reporting by Ismail Shakil and Dale Smith in Ottawa)

EUR/USD Stalls Out and May be Prepping for a Short-term CorrectionGBP to USD Forecasts: Bulls Target a Return To $1.23 on Wage GrowthSHIB to Target $0.00001200 on Release of the Shibarium Upgrade DateNY Empire State Manufacturing Index Missed ExpectationsRussias Seaborne Oil Exports Rise To New HighsCrypto Market Daily Highlights – ETH Extends Winning Streak to NineLoadingLoadingLoading