Canada’s Inflation Rate Drops To 6.3%

Inflation eased last month in Canada to a year-on-year rate of 6.3 percent as a result of slower growth in gasoline prices, the government stated Tuesday.

Also, for the first time in months, food prices rose at a slower pace, at a rate 11 percent compared to 11.4 percent in November.

On a monthly basis, the consumer price index fell 0.6 percent in December after a 0.1 percent gain in November, according to Statistics Canada.

Motorists paid 13.1 percent less for gasoline in December compared to November. It was the largest monthly drop since April 2020.

“This reflected lower prices for crude oil amid concerns of a slowing global economy, as well as reduced demand following an increase in Covid-19 cases in China,” the agency added.

Excluding food and energy, prices increased 5.3 percent on a yearly basis in December, after a rise of 5.4 percent in November.

Still, overall inflation as of the end of 2022 was three times the level of 2 percent which the Bank of Canada set as its goal.