Canada CPI Slows in December to 0.7%

By Paul Vieira

OTTAWA--Canada's annual inflation rate decelerated in December from the previous month, on lower prices for gasoline, phone service and air fares.

Canada's consumer-price index rose 0.7% on a year-over-year basis in December, Statistics Canada said Wednesday, versus a 1.0% advance in the previous month. Market expectations were for a 1.0% increase, according to economists from TD Securities. On a month-over-month basis, prices fell 0.2% in December.

Meanwhile, the Bank of Canada's preferred measures for underlying inflation fell from the previous month, according to Statistics Canada, with the average core CPI in December coming in at 1.57%. That is down from 1.67% in the previous month and 1.73% in October. Core inflation is meant to gauge price changes in items that exclude volatile goods like food and energy.

Write to Paul Vieira at [e-mail]

(END) Dow Jones Newswires

01-20-21 0902ET