Canada's Inflation Rate Down to 0.8 Percent in November


Consumer prices rose 0.8 percent in the 12 months to November, following a 1.2 percent gain in October. The November increase was the smallest year-over-year gain in the Consumer Price Index (CPI) since October 2009. On a seasonally adjusted monthly basis, the CPI decreased 0.2 percent in November after increasing 0.2 percent in October.

The slower increase in the CPI in November compared with October was attributable to a smaller year-over-year price increase for gasoline, as well as price decreases for the purchase of passenger vehicles.

Gasoline prices rose 0.4 percent in the 12 months to November, following a 4.0 percent advance in October. The largest year-over-year increase occurred in Quebec (+2.4 percent), and the biggest decline in British Columbia (-4.7 percent).
 
Prices for the purchase of passenger vehicles decreased 1.8 percent in the 12 months to November. This decline was attributable to smaller monthly price increases in November 2012 compared with November 2011.
 
Prices for transportation fell 0.2 percent year over year in November, after rising 1.7 percent in October. The 12-month decline in November was led by lower prices for the purchase of passenger vehicles. Smaller year-over-year price increases for gasoline in November compared with October were also a factor.
 
Food prices increased 1.7 percent on a year-over-year basis in November following a 2.0 percent advance the previous month. Consumers paid 2.1 percent more for food purchased from restaurants and 4.3 percent more for meat. In contrast, prices declined 5.8 percent for fresh vegetables.
 
Shelter costs increased 1.0 percent in the 12 months to November following a 0.9 percent advance in October. Homeowners' replacement cost, property taxes and rent increased on a year-over-year basis. Conversely, mortgage interest cost decreased 3.0 percent and natural gas prices declined 6.8 percent.
 
The seasonally adjusted index for transportation declined 1.2 percent in November following a 0.8 percent increase in October. The food index rose 0.1 percent in November after increasing 0.4 percent the previous month. The clothing and footwear index increased 0.3 percent after registering no change in October.

Statistics Canada | Andre Crujo | andre@tradingeconomics.com
12/21/2012 1:33:36 PM