Canada's Inflation Rate Drops to 1.8% with GST Holiday Impact

The federal tax break contributed to easing inflation in December, while Alberta and British Columbia saw higher regional rates.

Canada's annual inflation rate fell to 1.8% in December 2024, down from 1.9% in November, according to Statistics Canada.
The federal GST and HST holiday, which began on December 14, played a key role in reducing prices for restaurant meals, alcoholic beverages, and children's goods.
Alberta's inflation rate remained above the national average at 2.5%, with Edmonton and Calgary among the cities with the highest inflation rates in the country.
The Bank of Canada is expected to consider another interest rate cut at its January 29 meeting, following five consecutive cuts in 2024.
Potential U.S. tariffs on Canadian goods, announced by President Donald Trump, could introduce economic uncertainty and complicate inflation trends moving forward.