Canada’s inflation rate slowed in December to its lowest rate in almost a year, according to Statistics Canada.
The Consumer Price Index (CPI) stood at 6.3 per cent last month, down from 6.8 per cent in November.
“The headline CPI grew at a slower pace largely due to slower growth in prices for gasoline,” StatCan said in its report.
Consumers paid 13.1 per cent less for gasoline in December compared with November, the largest monthly decline since April 2020.
On a yearly basis, prices for gasoline rose three per cent in December compared to 13.7 per cent in November.
Meanwhile, grocery prices continue to rise much more quickly than the average rate of inflation.
Canadians paid 11 per cent more for groceries in December compared to a year earlier. That was down from 11.4 per cent in November.
Growth in prices for durable goods slowed to 4.7 per cent in December after a 5.3 per cent increase in November.
Prices for household appliances and furniture rose at a slower pace in December, according to StatCan.
“These slowdowns in price growth occurred amid easing supply chain pressures and lower shipping costs, as well as softer demand,” said the report.
Yearly price growth also slowed for passenger vehicles for the third month in a row, which StatCan said may reflect slowing demand for used vehicles.
Meanwhile, prices for personal care supplies and equipment grew 9.9 per cent year over year, the largest increase in nearly four decades.
“Price growth has trended upward since April 2021 as a result of broad-based increases among personal soap, toiletry items and cosmetics, oral-hygiene products and other personal care supplies and equipment,” said StatCan.
Regional inflation numbers
Prices rose at a slower pace in December compared with November in all provinces, according to StatCan.
Atlantic provinces saw the largest deceleration, which was largely the result of lower prices for furnace fuel oil.
New Brunswick had one of the lowest inflation rates among the provinces at 6.3 per cent in December, tied with Quebec.
Ontario and Alberta were the only two provinces with lower inflation rates at six per cent.
Prince Edward Island (7.7 per cent) and Nova Scotia (7.6 per cent) were among the highest, only behind Manitoba (8.0 per cent).