Canada’s inflation rate decreased to 6.3 per cent in December, the lowest level since February 2022. This comes after a 6.9 per cent inflation rate in November.
Statistics Canada, reported Tuesday that the cooling of the cost of living was mostly attributed to a 13 per cent decrease in the price of gasoline. This was the biggest one-month fall for gasoline since April of 2020.
Price relief was not matched in grocery prices however as these increased another 0.3 per cent in December and 11 per cent year over year. It is a slight decrease from the 11.4 per cent pace in November. One food item getting hit particularly hard is fresh vegetables which have gone up in price by 13.6 per cent in the past year.
The current inflation rate is still well above the 2% target set by the Bank of Canada, but it is a good sign to see that we have most likely reached the peak in 2022.
For the full inflation Consumer price index report from Statistics Canada, click here.