Statistics Canada’s consumer price index report Tuesday showed inflation was down from two per cent in October.

Shelter costs increased at a slower annual pace of 4.6 per cent, while rent price inflation accelerated to 7.7 per cent.

Grocery prices continued to grow faster than overall prices, rising 2.6 per cent from a year ago.

Inflation has hovered around the Bank of Canada's two per cent target for several months now, clearing the path for the bank to lower interest rates.

After delivering a second consecutive half-percentage point rate cut last week, governor Tiff Macklem signalled there would be more rate reductions coming, but that the central bank was to likely decrease the size of cuts.

The central bank’s key interest rate now stands at 3.25 per cent.

Tuesday’s report showed the Bank of Canada’s preferred core measures of inflation held steady at 2.6 and 2.7 per cent.

The overall slowdown in inflation comes as goods price inflation grinds to a halt, while high wage growth and rising housing costs continue to push up service prices.

This report by The Canadian Press was first published Dec. 17, 2024.

Nojoud Al Mallees, The Canadian Press