OTTAWA — Canada’s annual inflation rate fell to 1.8 per cent in December, thanks in large part to the federal government’s temporary tax break.

Statistics Canada’s consumer price index report on Tuesday said restaurant food purchases and alcohol bought from stores contributed the most to the deceleration.

The federal government introduced a temporary pause on taxes to those items in mid-December, along with tobacco and cannabis products, clothing and some toys, among others.

Without the tax break, Statistics Canada said the annual inflation rate would have risen to 2.3 per cent.{ai:summary}<p>Canada's annual inflation rate dropped to 1.8% in December, aided by a temporary tax break from the federal government. The consumer price index indicated that restaurant food and store-bought alcohol were significant contributors to this decline.</p><p>The government paused taxes on various items, including tobacco, cannabis, clothing, and toys, starting mid-December. #economy</p>

Inflation fell to 1.8 per cent in December, in part from GST tax break

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