Canadian Inflation Rises to 2.4% in December

Canadian inflation rose 2.4% in the 12 months to December, following the 2.0% increase posted in November. The 0.4 percentage point gain was mainly a result of higher gasoline prices., Statistics Canada 1/25/2011 2:07:40 PM

Between December 2009 and December 2010, gasoline prices increased 13.0%, after advancing 7.2% in the 12 months to November. Excluding gasoline, the Consumer Price Index (CPI) rose 1.8% in December, identical to the increase recorded in November.

In addition to paying more for gasoline, consumers paid 6.2% more for electricity and 9.2% more for natural gas in December. Overall, energy prices rose 10.5% during the 12 months to December.

Prices increased in seven of the eight major components of the CPI in the 12 months to December. The only exception was clothing and footwear.

On a seasonally adjusted monthly basis, consumer prices rose 0.3% from November to December, after increasing 0.2% between October and November. The transportation index, which includes gasoline, advanced 0.4%, while the shelter index increased 0.2% and the food index was up 0.3%. Increases were also recorded for the clothing and footwear index, the recreation, education and reading index and the health and personal care index.

Canadian Inflation Rises to 2.4% in December