Canada’s annual inflation rate rose to 1.8 per cent compared to last year in December, after landing at 1.9 per cent in November. Declining prices in restaurant food and alcoholic beverages—two items affected by the federal Liberals’ sales tax break introduced in December—were the biggest contributors to the inflation slowdown, according to Statistics Canada. (The Logic)

Talking point: Prime Minister Justin Trudeau announced the GST/HST tax break for a list of household essentials in November, pitching it as a way to give Canadians relief during the expensive holiday season. Former finance minister Chrystia Freeland appeared to distance herself from the tax break in her December resignation letter, saying Canada can’t afford “costly political gimmicks.” Gimmick or not, the measure appears to have temporarily kept costs down; analysts polled by Reuters had expected a 1.9 per cent inflation rate. Meanwhile, Loblaw is predicting food prices will continue to rise faster than inflation, thanks to factors including supply chain issues and a weak loonie.