Canada Inflation Quickens

Canadian consumer prices rose at their fastest pace in eight months in November because of higher gasoline costs, the national statistics agency said.

Prices rose at a 1 percent annual pace in November. Retail prices for gasoline climbed 14 percent from a year earlier compared with October’s drop of 13 percent, Statistics Canada said. On a monthly basis, the core inflation rate rose 0.4 percent, and overall inflation advanced 0.5 percent.

Bank of Canada Governor Mark Carney repeated yesterday he plans to keep his benchmark interest rate at a record low 0.25 percent through June to stimulate demand and bring inflation back to the 2 percent target in the second half of 2011. Lower gasoline prices drove the inflation rate below zero for four straight months through September, the longest period since 1953.

The so-called core inflation rate, which excludes gasoline and seven other volatile items, slowed to 1.5 percent on an annual basis from 1.8 percent in October. The lower rate was partly due to a 6 percent drop in car prices, StatsCan said.

Canada Inflation Quickens, Bloomberg
12/17/2009 9:32:12 AM