Canada Inflation Rate Rises to 2.1% in November

Consumer prices in Canada increased 2.1 percent year-on-year in November of 2017, following a 1.4 percent gain in the previous month and above market expectations of 2.0 percent. It is the highest rate since January of 2017, as prices advanced at a faster pace for gasoline and food. Meanwhile, the BoC's annual core inflation, which excludes volatile items, went up to 1.3 percent compared to 0.9 percent in October.

Year-on-year, transportation prices rose 5.9 percent in November, following a 3.0 percent rise in October. The gain was mainly driven by gasoline prices, which went up 19.6 percent, after a 6.5 percent increase in the previous month. The rise was partly attributable to higher crude oil prices, as well as a monthly decline one year earlier. In additon, the purchase of passenger vehicles index jumped 3.6 percent compared to a 1.9 percent gain in October, mostly due to the greater availability of new 2018 model year vehicles.

The food index rose 1.6 percent year over year in November from a 1.3 percent increase in October. On a month-over-month basis, the food index advanced 0.8 percent, the largest monthly gain since January of 2016, namely meat (1.9 percent) and fresh vegetable (3.8 percent).

Consumer prices for household operations, furnishings and equipment went up 0.9 percent on a year-over-year basis in November after increasing 0.2 percent in October, mainly driven by growth in the telephone services index (2.3 percent) which was partly attributable to a decline in prices in November 2016, which no longer influences the 12-month movement. Furniture prices rose 1.9 percent month over month, the largest since February 2015.

On a monthly basis, consumer prices edged up 0.3 percent, following a 0.1 percent rise in the prior month..

Canada Inflation Rate Rises to 2.1% in November

Statistics Canada | Stefanie Moya |
12/21/2017 3:07:32 PM