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- Canadian consumer price inflation dropped 0.7% in December
Canadian consumer price inflation dropped 0.7% in December
Statistics Canada released consumer price inflation data on Friday. Canadian consumer price inflation decreased 0.7% in December, missing expectations for a 0.5% decline, after a 0.4% drop in November.
On a yearly basis, the consumer price index fell to 1.5% December from 2.0% in November, in line with expectations. That was the lowest level since March 2014.
The consumer price index was driven by lower gasoline prices.
Canadian core consumer price index, which excludes some volatile goods, decreased 0.3% in December, in line with expectations, after a 0.2% decrease in November.
On a yearly basis, core consumer price index in Canada climbed to 2.2% in December from 2.1% in November. Analysts had expected the index to remain unchanged at 2.1%.
The Bank of Canada's inflation target is 2.0%.
The Bank of Canada (BoC) lowered its interest rate to 0.75% from 1.0% on Wednesday. Falling oil price was the main reason behind the interest rate cut.
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