"Most store types typically associated with holiday shopping registered weaker sales in December"
- Statistics Canada
The Canadian economy registered its lowest growth of consumer prices in more than three years last month due to a sharp decline in gasoline prices and clothing. According to the Statistic Canada, nation's inflation rose only by 0.5% in the 12 months to January, following a 0.8% gain in December. On a monthly basis, inflation edged up only 0.1%, after a 0.6% drop in the previous month, while below analysts' forecasts of a 0.3% gain. The report also showed a 1.8% decline in gasoline prices and 1.6% drop in clothing and footwear. The Bank of Canada's closely watched core rate, which excludes eight most volatile items, such as energy, tobacco and some food products, slipped to 1.0% from 1.1% in December.
"Most store types typically associated with holiday shopping registered weaker sales in December," Statistics Canada said in its report.
"Basically this combination of data just piles on what had already been a weak footing for the Canadian dollar. Both numbers came in below already weak expectations. Obviously the real eye-opener here was the retail sales result," BMO Capital Markets chief economist Doug Porter said.
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