OTTAWA – Canada’s annual pace of inflation ticked higher in December, but the rate was weaker than expected as lower food prices helped offset increases in the transportation and shelter groups.
Statistics Canada said Friday the consumer price index in December was up 1.5 per cent from where it was a year ago, a higher rate of inflation compared with November’s increase of 1.2 per cent.
Economists had expected a bigger increase of 1.7 per cent year-over-year in December.
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Prices were up for seven of the eight major categories compared with a year earlier, with food being the one exception.
The transportation index was up 3.0 per cent in December compared with a year ago, while the shelter index rose 2.1 per cent.
In contrast, Statistics Canada says the price of food fell on a year-over-year basis for the third consecutive month. Prices for food in December fell 1.3 per cent compared with a year ago.