Annual price growth ticked downward slightly in November
Canada’s inflation rate fell slightly in November, ticking downwards to 6.8% as gasoline prices continued to drop – although rent and food costs increased.
New figures from Statistics Canada showed that the overall inflation rate was one-tenth of a percentage point lower last month than the October reading, with gasoline coming in 3.6% cheaper on a month-over-month basis (although it remains 13.7% higher than the same time last year).
Grocery prices, meanwhile, are 11.4% higher than the same time last year, rising at a faster clip than in October, with overall shelter costs also spiking (7.2% year over year).
Mortgage interest costs surged by 14.5% compared with November last year, while rent posted a 5.9% increase across the board.
The findings arrive at a critical time between Bank of Canada interest rate decisions, with the central bank having indicated in its most recent statement that it would be weighing up whether its policy rate needed to rise further following a series of hikes this year.
One further consumer price index (CPI) report will arrive before the Bank’s first announcement of 2023, with the inflation rate expected to serve as a key indicator of whether the central bank deems more rate increases are necessary.
Inflation surged to a 30-year high in July, peaking at 8.1% before ticking slowly downwards in recent months.
