Statistics Canada reported on Tuesday the country’s consumer price index
(CPI) inched up 0.1 per cent m-o-m in November, following an unrevised 0.1 per
cent m-o-m uptick in the previous month.
On a y-o-y basis, Canada’s inflation rate rose 3.1 per cent last month,
the same pace as in October.
Economists had expected inflation would slip 0.1 per cent m-o-m but increase
2.9 per cent y-o-y in November.
According to the report, the November monthly gain in the headline CPI mainly
reflected increases in prices for shelter (+0.5 per cent m-o-m), food (+0.6 per
cent m-o-m) and clothing and footwear (+0.7 per cent m-o-m) that were offset by
a drop in transportation costs (-0.6 per cent m-o-m), which, in its turn, was due
to a fall in gasoline prices (-3.5 per cent m-o-m).
Meanwhile, the y-o-y
increase in the measure was attributable to gains in 6 of all 8 major
components, led by shelter (+5.9 per cent y-o-y), food (+5.0 per cent y-o-y), and alcoholic beverages, tobacco products and recreational cannabis (+4.6 per
cent y-o-y). These gains, however, were partly offset by declines in household
operations, furnishings and equipment (-1.5 per cent y-o-y), and transportation
(-0.1 per cent y-o-y).
The trimmed-mean CPI – the preferred measure of core inflation of the Bank
of Canada - climbed 3.5 per cent y-o-y in November, the same pace as in
the previous month.
Economists had forecast an advance of 3.3 per cent y-o-y.