FXstreet.com (Barcelona) - Canada staved off inflationary concerns as the consumer price index for December came in lower than market forecasts in both monthly and yearly terms.

The CPI for December was -0.3%, down from 0.5% in November. The core CPI, which excludes products with volatile prices such as energy and food, followed suit, down to -0.3% in December from 0.4% the previous month. The market had predicted slighter declines of -0.1% for the monthly CPI and 0.1% for the core CPI.

In year-over-year terms, the CPI grew 1.3%, up from 1.0% in November, but under forecasts of growth in the 1.6% range. The core CPI, for its part, held steady at 1.5% in for the second consecutive month while analysts had pointed to an increase of 1.8%.