The Financial Post reports in its Wednesday edition that Canada's consumer price index rose 1.8 per cent in December year-over-year, slightly below the expected 1.9 per cent. The Post's Gigi Suhanic writes that this data point comes just before the Bank of Canada's interest rate decision on Jan. 29. Ottawa's GST/HST tax holiday on certain items helped slow inflation. Excluding food, the CPI increased by 2.1 per cent in December. Derek Holt at Bank of Nova Scotia said in a note there is no need to cut rates. "What's the rush to cut?" he said. "I don't believe that the BOC should cut, but it may well take the easy route in what's priced," referring to the 80-per-cent bet markets have on a rate cut next week. Mr. Holt said that core inflation measures are well above the 2-per-cent target. For example, core median and trim CPI, policy-makers' preferred measures, are coming in at a hot 2.8 per cent and 3.5 per cent, respectively, on a seasonally adjusted annual rate. Take into account the "rebounding consumption in per capita terms" as well as a gross domestic product figure that could come in at 2 per cent annualized or more in the fourth quarter, and Mr. Holt thinks the case for a hold next week only gets stronger.