Inflation ticks lower to 1.8% in December, thanks in part to GST tax break
OTTAWA — Canada’s annual inflation rate fell to 1.8 per cent in December, thanks in large part to the federal government’s temporary tax break.
Statistics Canada’s consumer price index report on Tuesday said restaurant food purchases, and alcohol bought from stores contributed the most to the deceleration.
The federal government introduced a temporary pause on taxes to those items in mid-December, along with tobacco and cannabis products, clothing, and some toys, among others.
Without the tax break, Statistics Canada said the annual inflation rate would have risen to 2.3 per cent.