Statistics Canada says the annual inflation rate remained at 0.8% in December for the second straight month, continuing a year-long trend of moderating consumer price increases.
On a month-to-month basis, consumer prices dipped 0.6% from November - a bit more than economists expected.
Prices on a number of key items fell in December from the previous month, including gasoline, automobiles and clothing.
There were significant price pressures among other major components, with food among the most inflationary.
Regionally, prices rose in all provinces, but the highest - Nova Scotia at 1.8% - was still below the Bank of Canada's target rate of 2%.
November and December helped bring the average increase on Canadian consumer prices for 2012 to 1.5%, the lowest since 2009 when the economy was still hobbled by recession.
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