According to Statistics Canada, the annual inflation rate rose 3.4% in December.

The federal agency released its consumer price index report Tuesday morning, showing inflation increased from 3.1% in November.

Economists were largely anticipating this uptick due to a sharper decline in gasoline prices in December 2022 compared to last month.

Grocery prices rose 4.7% from a year ago, which matches the pace of increase in November.

Statistics Canada says the annual average inflation rate for 2023 was 3.9%, down from a 40-year high of 6.8% in 2022.

The federal agency also notes that the price growth in 2023 slowed in six out of eight components of the consumer price index compared to the previous year.