A combination of Christmas sales and falling gasoline and food prices contributed to one of the biggest one-month drop in consumer prices in years in December, Statistics Canada said Friday.
The 0.6 per cent overall decline in prices from November slashed the annual inflation rate by a similar amount to 2.3 per cent.
The one-month decline was the steepest since the summer of 2009, when the country was in recession.
Analysts had expected prices to cool due to Christmas season sales, but the consensus was for a 2.7 per cent inflation rate in December. Read More…
I always find economics fascinating and how all things are connected.
The trend is being experienced in the US as well. I am more concerned about the loonie. It has been taking a hit all last week and i think its more than being connected to inflation. I am hoping things turn around because i have a lot of money i need to convert.
And its reasons like this that prevent consumers from seeing the need to move towards EV cars instead of wasting their money on comustable engines. sigh.
Don’t worry this is going to be short lived. Does everyone have short memories. The very same thing happened last year. Prices jumped up in March. The same thing is going to happen here.
Wow, so christmas affects inflation? Huh? I really should have paid attention in school.
So in short this is a temporary thing and we can see a large spike to compensate for this short-term decline. Nice.
I always find economics fascinating and how all things are connected.
I knew i was feeling a little heavier in the wallet. For some time gas prices have indeed dropped in my area and i thought i was imagining things. Good to get confirmation.