Inflation Stays Put Despite Higher Fuel Prices

The annual pace of inflation held steady in December as higher energy prices were offset in part by slower growth in the price of fresh vegetables.

Figures released Wednesday by Statistics Canada revealed the consumer price index in December was up 2.2% compared with a year ago, matching the year-over-year increase in November.

Energy prices in December were up 5.5% compared with a year earlier, while gasoline prices were up 7.4% compared with December 2018 when crude oil prices fell amid a global oversupply.

The agency also said year-over-year growth in fresh vegetable prices slowed to 1.5% last month compared with an increase of 7.1% in November.

Excluding gasoline, CPI grew 2% which Statistics Canada says was the smallest increase since November 2018. The average of Canada’s three measures for core inflation, which are considered better gauges of underlying price pressures, was 2.1% compared with a revised figure of 2.13% for November.