Canada Inflation Rate Slows in November


Canadian annual inflation rate eased to 2 percent in November of 2014 from 2.4 percent in October. Gasoline prices fell 5.9 percent, reaching the lowest level since early 2011.

Transportation costs fell 0.2 percent in the 12 months to November, following a 1.1 percent rise in October. This decline was almost entirely attributable to lower gasoline prices (-5.9 percent in the 12 months to November, after rising 0.6 percent in the previous month). Conversely, consumers paid 1.3 percent more for the purchase of passenger vehicles on a year-over-year basis in November, after paying 0.9 percent more in October. 

The shelter index rose 2.3 percent in the 12 months to November, following a 2.8 percent gain in October. Natural gas prices increased 14.7 percent on a year-over-year basis in November, after recording a 20.1 percent rise the previous month. As well, electricity prices were up 3.6 percent year over year in November, following a 5.6 percent increase in October.

Food prices advanced 3.1 percent on a year-over-year basis in November. Prices for food purchased from stores were up 3.3 percent in the 12 months to November, led by a 12.2 percent rise in meat prices. Food purchased from restaurants cost 2.5 percent more in November compared with the same month in 2013.

The Bank of Canada's core index rose 2.1 percent in the 12 months to November, after increasing 2.3 percent in October.

On a monthly basis, consumer prices dropped 0.4 percent in November. The gasoline price index declined 7.5 percent in November, marking its fifth consecutive monthly decrease. In November, gasoline prices were at their lowest level since February 2011.

Canada Inflation Rate Slows in November


Statistics Canada | Carolina Cunha | carolina.cunha@tradingeconomics.com
12/19/2014 2:10:13 PM