Canada Inflation Rate Rises To 1.5% In December

Consumer prices in Canada increased 1.5 percent year-on-year in December of 2016, higher than 1.2 percent in November but below market expectations of 1.7 percent. Higher gasoline and shelter prices were the main contributors to the rise while food cost fell the most since July of 1992.
Statistics Canada | Joana Taborda | 1/20/2017 1:51:41 PM
Year-on-year, the transportation index rose for the fifth consecutive month, up 3 percent in December, after a 1.4 percent gain in November. This increase was led by gasoline prices (5.5 percent following a 1.7 percent decline in November). Meanwhile, air transportation index registered its largest year-over-year gain since August 2013. In contrast, the purchase of passenger vehicles index rose less (2.6 percent from 3 percent).

The clothing and footwear index increased 0.2 percent, following a 1.2 percent decline in November, partly due to the women's clothing index, up 2.0 percent after decreasing 0.2 percent. Additionally, prices for footwear were flat after declining 1.7 percent the previous month. Meanwhile, the children's clothing index (-4.5 percent) posted a year-over–year decrease for the eighth consecutive month.

Consumers paid 1.3 percent less for food. Cost for food purchased from stores decreased 2.8 percent, with the fresh vegetables, fresh fruit, and cereal products indexes contributing most to the decline. In contrast, prices for fish, seafood and other marine products, and prices for sugar and confectionery rose. Prices for food purchased from restaurants were up 2.3 percent, following a 2.5 percent gain in November.

On a monthly basis, consumer prices fell 0.2 percent after declining 0.4 percent in November.

Excluding food and energy, consumer prices fell 0.3 percent on the month and rose 1.6 percent on the year.

Canada Inflation Rate Rises To 1.5% In December