Canada Inflation Rate Accelerates in December


In December of 2013, Canada’s inflation rate accelerated for the second straight month to 1.2 percent, the highest value in five months. The faster annual increase in the CPI was largely attributable to higher gasoline prices, which advanced 4.7 percent in the 12 months to December, following a 0.4 percent gain in November.

Transportation prices advanced 2.1 percent on a year-over-year basis in December, after rising 0.5 percent the previous month. In addition to gasoline, prices for the purchase of passenger vehicles rose more in the 12 months to December (+1.4 percent) than in the 12 months to November (+0.4 percent.

Shelter costs rose 1.9 percent in the 12 months to December, following a 1.8 percent gain in November. Consumers paid 4.1 percent more for electricity and 1.6 percent more in rent. Conversely, mortgage interest cost decreased 1.3 percent on a year-over-year basis in December, after falling 2.1 percent the previous month.

Food prices rose 1.0 percent in December compared with the same month a year earlier. Prices for food purchased from stores increased 0.8 percent in the 12 months to December, following a 1.1 percent gain the previous month. Prices for fresh vegetables, meat and bakery products all posted smaller year-over-year increases in December compared with November.

Prices for food purchased from restaurants increased 1.4 percent on a year-over-year basis in December, following a 1.2 percent gain in November.

The health and personal care component decreased 0.4 percent in the 12 months to December, as the indexes for prescribed medicines, and personal care supplies and equipment declined.

On a monthly basis, prices fell 0.2 percent. 

Canada Inflation Rate Accelerates in December


Statistics Canada | Joana Taborda | joana.taborda@tradingeconomics.com
1/24/2014 1:40:02 PM