Inflation rate higher in December: Statistics Canada

The Consumer Price Index rose 3.4% on a year-over-year basis in December, following a 3.1% increase in November. The increase adds a little more uncertainty to what the Bank of Canada will do at its next interest rate announcement on Jan. 25.

Some of the reasons for the acceleration in inflation include higher costs for airfares, fuel oil, passenger vehicles and rent. Prices for food rose 4.7% year over year in December.