Canada's Inflation Rate Rises to 0.9% in November


Canada's Consumer Price Index rose 0.9% in the 12 months to November, following a 0.7% increase in October. November marked the 7th time in the last 13 months in which the CPI increased less than 1.0% on a year-over-year basis.


The energy component of the CPI, which includes electricity, natural gas, fuel oil and gasoline, increased 2.3% on a year-over-year basis in November, after decreasing 1.6% in October. The CPI excluding energy rose 0.8% in November compared with the same month last year, following a 0.9% rise in October.

The larger year-over-year rise in the energy component was led by gasoline prices, which rose 0.4% in the 12 months to November, after declining 4.3% in October. Gasoline prices fell on a monthly basis in November, although to a lesser extent than in the same month last year.

Electricity prices rose 5.1% on a year-over-year basis, led by an 8.1% increase in Ontario. Natural gas prices advanced 5.3% in the 12 months to November. The cost of fuel oil was 3.3% higher compared with the same month last year.

In the 12 months to November, six of the eight major components recorded gains. Higher shelter costs and food prices were the main contributing factors to the year-over-year increase in the CPI. Health and personal care, and clothing and footwear, were the only two major components to post declines on a year-over-year basis.

Shelter costs rose 1.8% in the 12 months to November, following a 1.3% gain in October. In contrast, mortgage interest cost declined 2.1% on a year-over-year basis in November, after falling 2.6% the previous month.

Food prices rose 1.1% in November compared with the same month last year, after posting a 0.9% increase in October. In addition to food purchased from stores, consumers paid 1.2% more for food purchased from restaurants on a year-over-year basis.

The transportation index increased 0.5% in the 12 months to November, following a 0.1% decline in October.Prices for clothing and footwear declined 0.4% in the 12 months to November, led by price decreases for women's clothing.

The health and personal care component decreased 0.6% on a year-over-year basis in November, as the indexes for prescribed medicines, and personal care supplies and equipment declined.

Canada


Statistics Canada | anna@tradingeconomics.com
12/20/2013 1:37:54 PM