Good news for Canadians: inflation fell to 1.8% in December, thanks in part to the federal GST holiday. This temporary tax break lowered the cost of restaurant food, alcohol, and children’s clothing, offering some relief to households. The GST break, which began mid-December, will last through January, giving consumers even more savings this month.
Here are the key points:
- Restaurant prices dropped by 1.6%, reversing a 3.4% increase in November.
- Alcohol prices fell by 1.3%, compared to a rise of 1.9% the month before.
- Housing costs still rose by 4.5%, but at a slower rate than November’s 4.6%.
- Gas prices increased 3.5%, due to year-over-year comparisons.
Inflation has stayed below the Bank of Canada’s target of 2% since August. This trend has allowed the Bank to lower interest rates to 3.25% and may lead to another rate cut soon. Lower rates are great news for anyone with a mortgage or considering buying a home, as they make borrowing more affordable.
This is a good time to explore how these changes could impact your mortgage or refinancing options. Connect with us at TopRankinMortgages to make the most of these opportunities.
Ready to get started? Contact us today for a free consultation.
