Canadian Consumer Price Index Increases 6.3% Year-Over-Year in December

Statistics Canada (StatCan) reported on Tuesday (1-17-22) that the Canadian Consumer Price Index (CPI) rose 6.3 % year-over-year in December, following a 6.8% increase in November. Excluding food and energy, prices rose 5.3% year-over-year in December, following a gain of 5.4% in November.

A deceleration in the price of gasoline helped to slow the growth of the CPI in December. In addition, the slower pace was aided by lower homeowner replacement costs, fuel oil, and other owned accommodation expenses, as well as from various durable goods. However, some of the slower growth was offset by increases in mortgage interest costs, clothing and footwear, and personal care supplies and equipment.

On a monthly basis, the CPI declined 0.6% in December, following a 0.1% gain in November. The December monthly decline is the largest since April 2020, significantly driven by gasoline prices, which also posted their largest monthly decline since April 2020. On a seasonally adjusted monthly basis, the CPI was down 0.1% in December.