01/23/2015 08:47 EST | Updated 03/25/2015 05:59 EDT

Canada's inflation rate drops to 1.5% on cheaper gasoline

Canada's annual inflation rate slowed to 1.5 per cent in December, down from two per cent in November, as the plunging price of gasoline again helped to rein in the cost of living.

Statistics Canada attributed the lower inflation rate mostly to an almost 17 per cent drop in pump prices.

To underline that point, the agency reported that if gas prices were excluded from its calculation, the annual consumer price index rate would have increased to 2.3 per cent.  

The latest weekly pump price survey from Calgary-based MJErvin & Associates showed the average price for a litre of regular gas was 91.3 cents a litre as of Tuesday. A year ago, the average pump price was $1.34.

The core inflation rate, which excludes such volatile items as gasoline, rose slightly to 2.2 per cent year over year. It had been 2.1 per cent in November.

More to come