Canada Inflation Rate Slows to 1.5%

Consumer prices in Canada increased 1.5 percent year-on-year in December, down from 2 percent rise reported in the previous month due to a sharp drop in cost of gasoline.
Statistics Canada | Joana Taborda | 1/23/2015 2:19:36 PM
Gasoline prices fell 16.6 percent in the 12 months to December, after declining 5.9 percent in November. As a result,  transportation costs declined 2.8 percent. Excluding gasoline, the CPI increased 2.3 percent, matching the November rise.

The shelter index rose 2.4 percent, following a 2.3 percent gain in November. Natural gas prices increased 16.5 percent after recording a 14.7 percent rise the previous month. Electricity prices were up 4.3 percent, following a 3.6 percent increase in November.

Food prices advanced 3.7 percent, after posting a 3.1 percent gain in November. Prices for food purchased from stores were up 4.2 percent, following a 3.3 percent increase the previous month. This acceleration was led by prices of fresh vegetables, which advanced 6.9 percent, after rising 2.6 percent in November. Consumers also paid more for meat (+13.1 percent) and food purchased from restaurants (+2.5 percent).

The Bank of Canada's core index rose 2.2 percent in the 12 months to December, after increasing 2.1 percent in the previous month.

On a monthly basis, consumer prices dropped 0.7 percent in November, following a 0.4 percent fall in November. Before seasonal adjustment, the gasoline price index fell 9.8 percent in December. Between June and December 2014, gasoline prices decreased 24.6 percent. 

Canada Inflation Rate Slows to 1.5%