FX.co ★ Canada’s inflation rate drops to 1.5%

Statistics Canada reported that CPI (consumer price index) declined 0.7 percent in December 2014 against 0.4 percent in the previous month. The annual inflation rate in Canada slowed to 1.5 percent after 2.0 percent down in November. Analysts expected the first index to drop 0.6 percent and the second one to rise 1.6%. Food prices were up 0.4 percent in December 2014 and 3.7 percent year-over-year. House prices increased by 0.2 percent and 2.4 percent compared with the same month in 2013. Transport expenses fell 2.2 percent and rose 2.8 percent, accordingly. Statistics Canada also released the retail sales data for November 2014. Retail sales rose 0.4 percent month-over-month in November 2014 and came out at 43.025 million CAD. Experts projected a 0.2% decline. Retail sales in Canada increased annually by 4.8 percent in November 2014. This indicator excluding car sales grew 0.7 percent to 32.607 million CAD. That is far from 0.1 percent expected by specialists. Retail sales excluding automobiles rose 3.6 percent on a yearly basis.