Evening Update: Inflation heats up in December, posing a challenge for the Bank of Canada

News Snapshot:

Good evening, let’s start with today’s top stories: Canada’s inflation rate went up to 3.4 per cent last month, with an acceleration in a number of core measures of consumer price growth demonstrating that inflation is turning out tricky to rein in. Housing prices continue to be a source of financial strain, and rents a source of inflationary pressure, as the country contends with a short supply of units. The Bank of Canada has previously said that lowering inflation back to its 2-per-cent target, which it doesn’t expect to hit till 2025, could be a bumpy ride. Matt Lundy reports....