Canada's inflation rate climbs to 3.4% in December

However, this rate remains significantly lower than June's 8.1%, the highest in 39 years. "Excluding gasoline, the headline CPI year-over-year rate slowed from 3.6% in November to 3.5% in December," Statistics Canada reported.

Despite a monthly decline in gasoline prices for four consecutive months, December's headline acceleration primarily resulted from a higher annual price increase in gasoline, recording a 1.4% gain.

The CPI decreased by 0.3% in December, matching market predictions, following a 0.1% rise in November. "On a seasonally adjusted monthly basis, the CPI increased by 0.3% in December," the statement noted.

The Bank of Canada, on December 6, maintained its interest rates and continued its quantitative tightening policy. The overnight rate target remained at 5%, with the bank rate at 5.25% and the deposit rate at 5%.