Canadian inflation, as measured by the Consumer Price Index (CPI), slowed slightly in December to 1.9 per cent year-over-year, down from 2.1 per in November. Excluding the price of gasoline, inflation was just 1.5 per cent. The Bank of Canada's three measures of trend inflation continue to trend close to 2 per cent. In BC, provincial consumer price inflation was 2.0 per cent in the 12 months to December.
While it did cool in December, inflation in Canada is now pushing up against the Bank of Canada's 2 per cent target after remaining fairly muted for much of the last year. Today's release shows a general firming of inflation around 2 per cent which, if sustained, will mean further rate increases from the Bank this year.