December Inflation Rises to 2.4% in Canada Amid GST Break Impact

Canada's annual inflation rate ticked up to 2.4 per cent in December compared to the same period last year, when the federal government implemented a GST break that brought some prices down, Statistics Canada said on Monday. The temporary tax cut, which began on Dec. 14, 2024, lasted for two months. But it continued to reverberate through monthly inflation data until last month, when it fell out of the year-over-year movement, according to the data agency. December's rate was a smidge higher than the 2.2 per cent rate seen in November. It was partly offset by a decline in gas prices. With gas excluded, inflation rose to three per cent in December (after a 2.6 per cent jump in November). Grocery price growth was unchanged between November and December but rose to five per cent when compared to the same time last year, with coffee and fresh or frozen beef still driving the increase.