In its latest economic data release, Canada reported a continued decrease in its Core Consumer Price Index (CPI) for the month of December 2024. Released on January 21, 2025, the data indicates a month-over-month decline of 0.3%, following a prior decrease of 0.1% in November 2024.
The Core CPI, which excludes volatile items such as food and energy, serves as a key indicator of underlying inflationary trends. The current drop to -0.3% raises concerns for policymakers and analysts who view it as an indication of weakening demand pressures in the Canadian economy.
This downward trend may influence the Bank of Canada's monetary policy decisions in the coming months, as further efforts might be necessary to stimulate economic activity and curb potential deflationary risks. The continued decline highlights the need for strategic economic adjustments to address possible underlying weaknesses in the market. As Canada's economic landscape evolves, all eyes will be on January's upcoming data to assess whether this downtrend persists or if recovery moves will take effect.
