Inflation rate picks up to 2% in December

Experts wary of longevity of low gas prices

The consumer price index in December recorded a 2 per cent gain from a year ago, up from 1.7 per cent in November, driven by a 22 per cent surge last month in the cost of air transportation. A consensus of economists had expected inflation to register 1.7 per cent for December, according to Thomson Reuters Eikon. Alberta saw a 2.1 per cent year-over-year hike in December, following a 1.7 per cent increase in November as well.

Overall, 2018 saw inflation finish above the central bank's target for the first time in seven years - averaging 2.3 per cent last year from 1.6 per cent in 2017.

Experts believe Friday's core figures mean there's no inflation-fuelled urgency for the Bank of Canada to raise its trend-setting interest rate. Experience from the summer also suggests that the artificial rise in airfares will temporarily push up at least some of the Bank's measures of core inflation. They were stable and held below the central bank's target.

All three measures of core inflation were unchanged in December.

"These may be somewhat backwards-looking indicators, but the message remains clear: there are few signs of fundamental inflationary pressure at the moment".

Brand new screenshots and official gameplay videos released for Mortal Kombat 11
WWE Superstars have a ton of fun on the road and one of the things they love doing in their spare time is playing video games . At the time of writing though, we can't find this demo rumour on Reddit and Gamerant haven't linked to it.

Lower gas prices, down 8.6 per cent last month, kept inflation from being even higher. Excluding gasoline, consumer price inflation hit 2.5 per cent, the fastest since 2014. It is important to remember that the jump in air travels was temporary due to the holiday season. Earlier this year, Stats Can changed the way that it tracks airfares in order to better capture seasonality.

"In Alberta, electricity prices rose 27.5 per cent in 2018, which was the largest increase since 2011".

Among the main downward forces on prices, consumers paid 5.6 per cent less for hotels, 4.1 per cent less for natural gas and 5.7 per cent less for digital computing devices and equipment.

Prices rose more on a year-over-year basis in seven provinces in December compared with the previous month, the report said. It did note, however, that the weaker Canadian dollar could apply upward pressure on inflation.

A core rate at near 2 per cent is consistent with an economy at full capacity - but not one that is overheating.

Related news:

Hot News

isis-killer-beheading-video-story-top Bogota bomb blast: death toll rises to 21
Jan 21, 2019 - 03:19
Meanwhile, Panama's President Juan Carlos Varela said that 45 Panamanian cadets were present during the attack, with two injured. Defense Minister Guillermo Botero said on Friday the auto was driven by ELN explosives expert Jose Aldemar Rojas.

isis-killer-beheading-video-story-top Special Counsel disputes Buzzfeed article on Michael Cohen
Jan 21, 2019 - 03:01
Immediately after the special counsel's statement was issued, Trump retweeted several posts that called the story fake news . For the most comprehensive local coverage, subscribe today. "Obviously, we stand by the reporting in this story".

isis-killer-beheading-video-story-top Federer Suggests He'll Play French Open For First Time 2015
Jan 21, 2019 - 02:28
Tsisipas erased that chance with a 123 miles per hour (198 kph) serve initially called out, then reversed on a challenge. Federer took the decision to skip the last two clay seasons after negotiating several injuries in his thirties.

isis-killer-beheading-video-story-top Lakers Issue New Injury Update For LeBron James
Jan 20, 2019 - 01:35
But Westbrook pulled up as soon as Ball reached in and got the call in the act of shooting, leading to three free throws. Kyle Kuzma scored a game-high 32 points for the Lakers, while pulling down eight rebounds and dishing out four assists.

isis-killer-beheading-video-story-top Ronaldo goal wins Italian Supercup for Juventus: "This is only the start"
Jan 20, 2019 - 01:19
Congratulations to Paulo DYBALA! "Until a year ago , women [in Saudi Arabia] could not attend any sporting event", he said. I want to be honest, I didn't even want to talk about Higuain , as we're here for the Supercoppa.

isis-killer-beheading-video-story-top Mexico Pipeline Blast Death Toll Climbs to 66
Jan 20, 2019 - 01:10
Thousands of marines have been deployed to guard pipelines and transport has been shut down altogether in places. Taking to Twitter, he said: "I urge the entire population not to be complicit in fuel theft.

isis-killer-beheading-video-story-top Border Patrol Arrests 376 Who Dug Under Barrier in Arizona
Jan 20, 2019 - 01:06
They say that is what occurred early Wednesday morning - just after midnight - when Border Patrol agents encountered 247 migrants. Officials said that most of the group entered the USA through seven small openings burrowed under the border barrier.

isis-killer-beheading-video-story-top What to do about $50000 Jayme Closs reward
Jan 20, 2019 - 00:55
Jayme said she thought her kidnapper drove a Ford , which led the deputy to call for backup and run the vehicle's license plate. She told investigators that she was often forced under her captor's bed and blocked in by weights.

isis-killer-beheading-video-story-top Jason Van Dyke Sentencing Hearing
Jan 20, 2019 - 00:34
Jason Van Dyke , who was booted from the force once he was convicted, was led into court Friday in a yellow jail jumpsuit. The shooting was captured on dashcam video, which sparked nationwide calls for justice after its release in 2015.

isis-killer-beheading-video-story-top Queen's 97-year-old Husband Survives Dramatic Car Smash
Jan 19, 2019 - 01:48
The stretch of road has been on the council radar since 2015 with 40 recorded accidents including 5 fatalities between 2012-2018. Police tested both Philip and the driver of the other vehicle for signs of alcohol, but both breathalyser tests were negative.

isis-killer-beheading-video-story-top Second summit: Trump and Kim set to meet in February
Jan 19, 2019 - 01:43
Kim Jong Un expressed frustration in an annual New Year's address over the lack of progress in negotiations. Special Representative for North Korea, Stephen Biegun, right, meet in Washington, Friday, Jan. 18, 2019.

isis-killer-beheading-video-story-top Lawrenson predicts Arsenal victory over Chelsea will open race for top four
Jan 19, 2019 - 01:27
Chelsea are now six points ahead of fifth placed Arsenal in fourth, and are yet to taste defeat in the league this calendar year. He's had injuries and not been OK to play matches, but now after these two weeks maybe this Saturday will be okay for him".

isis-killer-beheading-video-story-top Top N. Korean official in DC for talks with Pompeo
Jan 19, 2019 - 01:23
North Korea fired artillery shells and rockets to the island, killing four and injuring 19. It was flown to Pyongyang and delivered by hand, the source said on Monday night.

isis-killer-beheading-video-story-top U.S. report says rapidly modernizing Chinese military has set sights on Taiwan
Jan 18, 2019 - 02:45
But China is spending less on research and development because it has either bought or nicked technology from other countries. Chinese advancements in some technology will soon be among the world's most leading-edge.

isis-killer-beheading-video-story-top Andy Robertson: Liverpool & Scotland defender signs new contract until 2024
Jan 18, 2019 - 01:20
He had to be patient, he had to be ready when his chance came and his progression since is an example to any player joining us. Andy Robertson has penned a new deal at Liverpool , keeping him at the club until the summer of 2024.