The consumer price index increased 1.9 per cent from a year earlier, Statistics Canada reported. The temporary exclusion of the GST and HST on food, drink and sundry holiday items countered higher energy prices, keeping headline inflation at or below the Bank of Canada’s target of two per cent for the fifth consecutive month. (The Logic)

Talking point: Inflation isn’t quite a non-issue, as various temporary tax cuts appear to be masking underlying price pressures. The two measures of “core” inflation the Bank of Canada uses to filter out volatile prices both rose last month. CIBC’s Andrew Grantham observed that excluding indirect taxes, the index increased 2.6 per cent. There’s no reason to panic. Shelter costs and the price of services increased at the slowest rate since the summer of 2021. Still, the sight of some glowing embers makes a case for pausing interest rate cuts.