Analysts at National Bank Financial note that in Canada, the consumer price index was down 0.1% (not seasonally adjusted) in November but a positive base effect meant that the year-on-year inflation rate still rose three ticks to 2.2%.

"The Bank of Canada's three core inflation measures year on year were as follows: 1.9% for CPI-common (unchanged from the prior month), 2.2% for CPI-trim (up one tick) and 2.4% for CPI-median (up one tick). Hence, the average of the three measures rose one tick to 2.2%, its highest level in a decade. The combination of tight labour markets and fading global uncertainties should keep core inflation above the BoC's 2% target for the foreseeable future. In light of this, we continue to believe rate cuts an unlikely scenario."