Canada’s inflation rate eased slightly in November but there were signs that underlying price pressures in the economy remain strong, increasing the odds that the Bank of Canada moves ahead with another interest-rate increase in January.

The rate of inflation has trended down since peaking near a four-decade high of 8.1 per cent in June. But key measures of core inflation, which strip out volatile food and gasoline prices, continued to rise in November.

That suggests the economy is still running hot in the face of multiple interest-rate hikes, and makes it more likely that the Bank of Canada will raise rates at least one more time next month.

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