OTTAWA – Statistics Canada is expected to release its December consumer price index report this morning.
Economists polled by Reuters expect the annual inflation rate for December to remain unchanged from the prior month at 1.9 per cent, according to LSEG Data & Analytics.
Some economists are predicting the headline inflation number could be as low as 1.5 per cent thanks to the federal government’s GST tax holiday, which began mid-December.
Inflation has moderated significantly from its recent highs and is now stabilizing around the Bank of Canada’s two per cent target.
However, if U.S. President Donald Trump introduces the tariffs on Canadian goods he has threatened, economists have said that could be inflationary on both sides of the border.
After cutting its key interest rate aggressively to 3.25 per cent, the Bank of Canada could cut again later this month.
This report by The Canadian Press was first published Jan. 21, 2025.
