The Globe and Mail reports in its Wednesday edition that inflation is proving tough to tame, complicating matters for the Bank of Canada as it mulls when to lower interest rates. The Globe's Matt Lundy writes that the Consumer Price Index rose at an annual pace of 3.4 per cent last month, up from 3.1 per cent in November, Statistics Canada said Tuesday. This result was heavily influenced by what economists refer to as base effects: a tumble in gasoline prices a year ago created an unflattering base for year-over-year comparisons -- hence the increase in the annual inflation rate. Although this uptick was in line with expectations, several measures of core inflation raised eyebrows. The BOC's preferred measures rose at an average annual rate of 3.65 per cent, from 3.55 per cent in November. Analysts were expecting a reading of 3.35 per cent. The BOC has repeatedly stressed that bringing inflation back to its 2-per-cent target could be a bumpy ride, and that it does not expect to hit that mark until 2025. If core inflation does not subside soon, that could make it difficult for the BOC to ease off its main mechanism for restoring price stability: holding interest rates at elevated levels to slow demand in the economy.