Canada’s inflation rate slows to 1.9% as gas prices become steadier

The annual pace of inflation slowed in December compared with November as gains in the price of gasoline slowed, according to Statistics Canada.

The agency said the consumer price index for the final month of 2017 was up 1.9 per cent compared with the same month a year earlier. That compared with a reading of 2.1 per cent in November.

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Excluding gasoline, prices were up 1.5 per cent year over year in December, matching the increase in November.

Prices were up in seven of the eight major categories as the transportation index which includes gasoline and the shelter group led the way.

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Transportation prices were up 4.9 per cent from a year ago compared with a 5.9 per cent increase in November. Gasoline, a key component of the group, climbed 12.2 per cent compared with a year earlier following a 19.6 per cent increase in November.

The shelter index climbed 1.4 per cent compared with a year ago as natural gas prices rose 6.2 per cent following a 3.1 per cent increase in November.

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