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Canada’s inflation rate slows to 0.7% in December

Click to play video: 'Coronavirus: Canada’s economy could suffer in 1st quarter of 2021 with rising COVID-19 infections'
Coronavirus: Canada’s economy could suffer in 1st quarter of 2021 with rising COVID-19 infections
Canada's economy could contract in the first quarter of 2021 as rising COVID-19 infections dampen near-term growth, Bank of Canada Gov. Tiff Macklem said on Tuesday. While speaking with reporters, Macklem said that while the arrival of effective COVID-19 vaccines had created more clarity around when the pandemic will end, the worsening second wave was putting a "chop" in the recovery. – Dec 15, 2020

Statistics Canada says the annual pace of inflation slowed in December.

The agency says the consumer price index was up 0.7 per cent compared with a year earlier. That compares with a year-over-year increase of one per cent in November.

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Prices rose in six of the eight major components on a year-over-year basis in December.

Excluding gasoline, the annual pace of inflation in December was one per cent compared 1.3 per cent in November.

The average of Canada’s three measures for core inflation, which are considered better gauges of underlying price pressures and closely tracked by the Bank of Canada, was 1.57 per cent for December, down from 1.67 per cent in November.

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