Canada Inflation Rate

Canada’s annual inflation rate fell to 6.3% in December of 2022, the least since February 2022 and below market expectations of 6.4%, compared to the 6.8% in November and further declining from the 1983-high of 8.1% from June. Price growth fell sharply for transportation (6% vs 8.5% in November), as lower crude oil benchmarks worldwide eased inflation for gasoline (3% vs 13.7%), and fuel and other fuels (52% vs 73.4%). Prices also decelerated for shelter (7% vs 7.2%), as the decline in homeowners’ replacement inflation offset the increase in mortgage costs. Costs also eased for food (10.1% vs 10.3%), due to lower prices in grocery stores (11% vs 11.4%). On a monthly basis, the Canadian CPI declined by 0.6%, the most since April 2020.