Canada's annual inflation rises to 3.4% in December from 3.1% in November

By Ovunc Kutlu

ISTANBUL (AA) - Canada's annual consumer inflation increased to 3.4% in December, from a gain of 3.1% in November, the country’s statistical authority said Tuesday.

The consumer price index (CPI) came in line with expectations.

The rate, however, is still significantly lower than the 8.1% figure in June, which was the highest in 39 years.

"Excluding gasoline, the headline CPI slowed year over year, from 3.6% in November to 3.5% in December," Statistics Canada said in a statement.

While gasoline prices fell on a monthly basis for the fourth consecutive month, the headline acceleration was largely the result of a higher annual price gain for gasoline in December that showed a gain of 1.4%, according to the agency.

CPI was down 0.3% in December, also coming in line with market estimates, following a 0.1% increase in November.

"On a seasonally adjusted monthly basis, the CPI rose 0.3% in December," said the statement.

The Bank of Canada on Dec. 6 kept interest rates unchanged and said it continues its policy of quantitative tightening. The target for the overnight rate was maintained at 5%, with the bank rate at 5.25% and the deposit rate at 5%.