Canada Inflation Quickens to 2.4% on Effects of Tax Break (2)

Inflation accelerated in Canada by more than expected as a federal tax holiday at the end of 2024 pushed yearly price comparisons higher, offsetting falling gasoline costs.

Headline inflation quickened to 2.4% in December, Statistics Canada data showed Monday. That was above the median projection in a Bloomberg survey of economists, who were expecting yearly price pressures to stay at 2.2%.

But core measures of inflation — which strip out more volatile price changes — broadly eased. The average of the Bank of Canada’s trim and median gauges decelerated to a 2.6% yearly clip, from 2.9% previously. On a three-month ...