Statistics Canada reported on Wednesday the country's consumer price index (CPI) was unchanged m-o-m in December, following a 0.1 percent m-o-m decrease in the previous month.

On the y-o-y basis, Canada's inflation rate increased 2.2 percent last month, matching the gain in November.

Economists had predicted inflation would edge up 0.1 percent m-o-m and advance 2.2 percent y-o-y in December.

According to the report, gasoline prices drove the CPI increase in December, surging 7.4 percent y-o-y, following a 0.9 percent y-o-y increase in November. Excluding gasoline, the CPI rose 2.0 percent y-o-y, the smallest gain since November 2018.

Meanwhile, the closely watched the Bank of Canada's core index rose 1.7 percent y-o-y in December, following a 1.9 percent advance in each of the previous four months. Economists had forecast an advance of 1.9 percent y-o-y.