Statistics Canada released consumer price inflation data on Friday. Canadian consumer price inflation fell 0.5% in December, missing expectations for a 0.4% decline, after a 0.1% decline in November.

The monthly decline was mainly driven by a drop in clothing and footwear prices, which dropped 5.2% in December.

On a yearly basis, the consumer price index rose to 1.6% in December from 1.4% in November, missing expectations for a gain to 1.7%.

The consumer price index was mainly driven by higher food and shelter prices. Food prices climbed 3.7% year-on-year in December, while transportation prices increased 0.6%.

The index for recreation, education and reading climbed by 1.7% in December from the same month a year earlier, the shelter index gained 1.1%, while gasoline prices dropped 4.8%.

The Canadian core consumer price index, which excludes some volatile goods, decreased 0.4% in December, after a 0.3% fall in November.

On a yearly basis, core consumer price index in Canada declined to 1.9% in December from 2.0% in November, missing expectations for a rise to 2.1%.

The Bank of Canada's inflation target is 2.0%.