Canada's inflation rate fell to 1.8 per cent in December, with the federal government's GST holiday contributing to a price decline across several categories, Statistics Canada said Tuesday.

Canada's annual inflation rate slowed in December, data showed on Tuesday, helped by a sales tax break which kicked off from the mid of the month and brought down prices of alcohol, restaurant foods and children's clothing.

Consumer prices on the West Coast dropped by 0.1 per cent last month, as the province’s inflation rate cooled to 2.6 per cent.

Canada's annual inflation rate dropped to 1.8% in December, Statistics Canada said on Tuesday, slightly lower than expected and a tick below the prior month's 1.9%. Market reaction: [CAD/] Link: COMMENTARY DOUG PORTER,

For the first time since 2019, Canadian inflation stayed within the central bank’s target range for a full year, a mark of achievement for policymakers ahead of a potential tariff war that threatens to derail their progress.

The Consumer Price Index (CPI) rose 1.8% year-over-year in December 2024, slightly down from November's 1.9%, according to Statistics Canada. The decline was largely influenced by reduced prices for food purchased from restaurants and alcoholic beverages from stores.

Canada's annual inflation rate dropped to 1.8% in December, Statistics Canada said on Tuesday, slightly lower than expected and a tick below the prior month's 1.9%.

Canada's annual inflation rate ticked lower in December, thanks in part to Ottawa's temporary GST tax break, but economists still see interest rate cuts on the horizon as potential tariffs loom.