Mon, Mar 01, 2021 @ 00:52 GMT
Home Contributors Fundamental Analysis Canadian Inflation Rate Edged Lower in December

Canadian Inflation Rate Edged Lower in December

  • Canada CPI growth slowed to 0.7% year-over-year
  • Food price growth decelerated
  • Lower inflation leaving the BoC free to keep interest rates low

Canadian consumer price growth slowed in December – to 0.7% compared to a year ago versus 1.0% in November. Weak demand for transportation continued to weigh on airfares – which were down 14.5% from a year ago on much weaker-than-normal holiday travel demand. Food price growth also slowed to 1.1% from 1.9% in November. Energy prices were still down 4% from a year ago despite a 2% increase from November levels.

The Bank of Canada’s preferred ‘core’ CPI measures (which are a better gauge of underlying inflation pressures) also slowed supporting our view that the Bank of Canada will maintain their highly stimulative monetary stance.

RBC Financial Grouphttp://www.rbc.com/
The statements and statistics contained herein have been prepared by the Economics Department of RBC Financial Group based on information from sources considered to be reliable. We make no representation or warranty, express or implied, as to its accuracy or completeness. This report is for the information of investors and business persons and does not constitute an offer to sell or a solicitation to buy securities.

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