Canada's annual inflation rate slowed in December, data showed on Tuesday, helped by a sales tax break which kicked off in the middle of the month and brought down prices of alcohol, restaurant foods and children's clothing.

Canada's inflation rate fell to 1.8 per cent in December, with the federal government's GST holiday contributing to a price decline across several categories, Statistics Canada said Tuesday.

Canada's annual inflation rate dropped to 1.8% in December, Statistics Canada said on Tuesday, slightly lower than expected and a tick below the prior month's 1.9%. Market reaction: [CAD/] Link: COMMENTARY DOUG PORTER,

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.

Canada's annual inflation rate slowed to 1.8 per cent in December after rising 1.9 per cent in Novem ber, as the temporary GST tax break brought down the price of restaurant meals, alcohol and toys. Economists polled by Reuters had expected inflation to remain unchanged at 1.9 per cent last month.

For the first time since 2019, Canadian inflation stayed within the central bank’s target range for a full year, a mark of achievement for policymakers ahead of a potential tariff war that threatens to derail their progress.

Canada's annual inflation rate dropped to 1.8% in December, Statistics Canada said on Tuesday, slightly lower than expected and a tick below the prior month's 1.9%.