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 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, restaurant foods and children's clothing.

Canada’s inflation rate fell to 1.8% in December, a surprising drop. This decrease is largely due to a sales tax break introduced mid-month, which reduced the cost of goods like alcohol, restaurant meals,