Canada's annual inflation rate slipped to 6.3% in December, slightly lower than expected, mainly due to slower annual growth in gas prices, Statistics Canada said on Tuesday.
Analysts expect the headline inflation figure to fall to 6.4% from 6.8% in November. Month-on-month, inflation fell 0.6%, again lower than analysts' forecast of a 0.5% fall.
Consumers paid 13.1% less at the gas pump in December than in November, the biggest monthly drop since April 2020, Statistics Canada said. On an annual basis, gasoline prices 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% increase in November. December's headline figure was still more than three times the Bank of Canada's 2% target.
The bank has raised its benchmark interest rate by a record 400 basis points in nine months to 4.25% and said the decision to raise rates further will depend more on data.
The Canadian dollar strengthened to 1.34 per U.S. dollar, or 74.63 U.S. cents, after the inflation data was released.
