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

The annual inflation rate in Canada eased to 1.8% in December from 1.9% in the previous month, slightly below market expectations that it would remain at 1.9%. The annual core inflation rate in Canada which excludes eight of the most volatile components such as food,

Canada's annual inflation rate ticked lower in December, thanks in part to Ottawa's temporary GST tax break, but economists still see interest rate cuts on the horizon as potential tariffs loom.

Canada’s inflation rate fell to 1.8% in December, a surprising drop. This decrease is largely due to a sales tax break introduced mid-month, which reduced the cost of goods like alcohol, restaurant meals,

Canada's annual inflation rate slowed to 1.8 per cent in December after rising 1.9 per cent in November, 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.