Canada's inflation rate fell to 1.8 per cent in December, Statistics Canada said on Tuesday.

Consumer prices in Canada continued to climb up at a soft pace in December, data showed on Tuesday, helped by a sales tax break which kicked off from the mid of the month and brought down prices of alcohol,

For the first time since 2019, Canadian inflation stayed within the central bank’s target range for a full year, a mark of achievement for policymakers ahead of a potential tariff war that threatens to derail their progress.

Canada's annual inflation rate slowed to 1.8 per cent in December, according to Statistics Canada, after rising 1.9 per cent in November. Economists polled by Reuters had expected inflation to remain unchanged at 1.