Inflation in Canada fell to 1.8% on an annual basis in December, with the federal government’s GST break contributing to declines in prices for restaurant food, alcohol and children’s clothes, Statistics Canada has revealed.
The Consumer Price Index (CPI) was down from a 1.9% increase in November and a 2% increase in October.
The CPI excluding food increased by 2.1% in December.
Amid the Goods and Services Tax (GST) break, with some provinces also waiving Harmonized Sales Taxes (HST), consumers saw a 1.6% year-over-year decline in restaurant food.
Alcohol prices decreased by 1.3% in December, compared to a 1.9% increase in November.
The prices of toys, games (excluding video games) and hobby supplies decreased 7.2%, while the children’s clothes index fell 10.6% in December.
Meanwhile, shelter costs grew at a slower pace in December, up 4.5% compared to a 4.6% rise in November.
Gas prices showed a 3.5% increase on an annual basis in December, compared to a 0.5% decline in the previous month.