Consumer prices continued to slowly moderate in December, suggesting peak inflation may have passed.
Canadians paid 6.3% more for goods and services in December compared to one year ago, marking a modest downshift from November’s 6.8% year-over-year increase and better than economists’ forecasts calling for an annual gain of 6.4%. Core CPI, which does not account for food and energy, decelerated to an annualized 5.3% last month, following November’s gain of 5.4%.
The majority of last month’s decline was due to a 13.1% month-over-month drop in gasoline prices, deceleration in the homeowners’ replacement cost to 4.7%, and a decrease in the price of durable goods. The slowdown in CPI was offset by rising mortgage interest costs, which jumped 18% from December 2021. Grocery prices also continued to increase last month— albeit at a slower pace. Prices for food purchased from stores increased 11% in December, following an increase of 11.4% in the month prior.
Information for this briefing was found via Statistics Canada. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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