According to Statistics Canada, the annual inflation rate experienced an increase to 3.4 percent in December.
This morning, the federal agency unveiled its consumer price index report, revealing a slight uptick from the 3.1 percent recorded in November. Economists had anticipated this rise, attributing it to a more pronounced decline in gasoline prices in December 2022 compared to the previous month.
Notably, grocery prices saw a 4.7 percent increase from a year ago, aligning with the pace of growth observed in November. As December concludes the fiscal year, Statistics Canada notes that the annual average inflation rate for 2023 settled at 3.9 percent, down from the 40-year high of 6.8 percent recorded in 2022.
Further analysis by the federal agency indicates that price growth in 2023 decelerated in six out of eight components of the consumer price index compared to the preceding year.
The Bank of Canada is closely monitoring these inflationary trends in preparation for its upcoming rate announcement on January 24th.