‘Data for Business’ is an effort of the Langley Chamber, in partnership with the Canadian Chamber’s Business Data Lab, to bring our members reports, stats, and analysis on economic and business data to help inform business and investment decisions. Read our latest update below:

Canada’s headline inflation decelerated to 1.8% in December on a year-over-year basis.  Annually, prices increased in 2024 by 2.4%, down from 3.9% in 2023 and within the Bank of Canada's target range. 

Food price increased slowed, attributed in part to the temporary GST break. In December, food inflation rose only 0.6%, with restaurant prices declining 1.6% year-over-year

Inflation accelerated in British Columbia, Saskatchewan, Manitoba, and Quebec. Prices slowed in all other provinces with Newfoundland and Labrador experiencing the slowest price growth.   In BC, inflation was 2.6% over December 2023, putting it at the highest rate in the country for this month.  Within B.C., consumer prices increased above the provincial average in both Vancouver (+3.2%) and Victoria (+2.8%). 
 
Commentary:

“The Bank of Canada might be rethinking its bias toward rate cuts as the threat of tariffs looms closer. Central banks aren’t immune to uncertainty, and while there’s still room to maneuver with moderating inflation, there are signs of activity picking up. Businesses are reporting stronger sales and investment intentions, helped by the easing in financial conditions.

That said, a weaker Canadian dollar could amplify the impact of any new tariffs on the Canada side by driving up import costs. It’s a tough spot for the Bank, with a 25bps move on the table at next week’s meeting. They might opt for caution, but if they do, a larger move in March could be on the cards—they’re certainly not strangers to bold action.” - Andrew DiCapua, Senior Economist, Canadian Chamber of Commerce