Ottawa: T-D Bank economist Leslie Preston says December’s inflation report underscores that the last mile of getting inflation all the way back to two per cent is the hardest.
The annual inflation rate rose 3.4 per cent in December, ticking up from 3.1 per cent in November.
With some core measures of inflation also up, the report reinforces the expectation that the Bank of Canada won’t be in a rush to cut interest rates.
Statistics Canada says the jump reflects a sharper decline in gasoline prices a year ago compared to last month.
If you factor out gas prices, inflation slowed year-over-year, from 3.6 per cent in November to 3.5 per cent in December.
The Bank of Canada is set to make its latest interest rate announcement next week, and is expected to keep its key interest rate at five per cent.

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