As Canadians prepared for the holiday season in December, the rate of inflation went back up.
According to the Consumer Price Index (CPI) for December 2023, released Tuesday, the inflation rate went up to 3.4 per cent in December, up from the 3.1 per cent rate we saw in November and October.
Despite gasoline prices falling for the fourth straight month by 4.4 per cent, the increase was due to the higher year-over-year prices in December. With gasoline out of the equation, the headline inflation rate dropped one-tenth of a point to 3.6 per cent.
Prices for holiday travel and entertainment were reflected in the December CPI, though the cost to keep groceries in the kitchen cupboards was stable.
"Additional acceleration came from airfares, fuel oil, passenger vehicles, and rent. Prices for food purchased from stores rose 4.7 per cent year over year in December, matching the increase in November," read the summary from Stats Canada. "Moderating the acceleration in the all-items CPI were lower prices for travel tours."
It still cost more for renters to keep a roof over their heads in December, with rates up 7.7 per cent, compared to 7.4 per cent in November. Ontario, Quebec, and British Columbia recorded the biggest rises. Ontario's increase for December was 6.9 per cent.
The cost of passenger vehicles also went up in December. The CPI showed a 2.3 per cent year-to-year increase last month, compared to 1.5 per cent in November. The increase was fueled by the availability of the new 2024 models.
The complete CPI report for December is available on the Stats Canada website.
The summary for January 2024 will be released on February 20.
