Inflation pretty much came in as expected in December, according to figures released this morning by Statistics Canada.
The unadjusted all-items Canadian CPI index declined 0.2% on a month-over-month basis in December. The annual inflation rate rose to 1.2% from 0.9% in November as last year's monthly 0.6% drop is prices exceeded this year's 0.2% dip.
Of the eight major components of the CPI, six posted increases relative to December 2012.
On a seasonally-adjusted basis, consumer prices rose 0.2% in December. The Bank of Canada's core measure dipped 0.4% on an unadjusted basis and was up 0.2% on a seasonally adjusted basis. Relative to a year earlier, the Bank’s core rate increased 1.3% from 1.1%.
The month-over-month drop in the unadjusted headline index reflected lower prices for clothing and footwear, traveler accommodation and tours and furniture.
Gasoline prices rose in the month of December by 1.8% and the year-over-year rate of growth in the component picked up to 4.7% from 0.4% in December.
In 2013, Canada's headline inflation rate averaged 0.9%, the slowest pace of increase since 2009's 0.3%. The core measure averaged 1.3%, a 13-year low as it matched the gain recorded in 2000.
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