Canada’s inflation rate declined to an annualized 1.9% in November as the national economy continues to slowdown.
Statistics Canada reported that the Consumer Price Index (CPI) rose 1.9% on a year-over-year basis in November, down from a 2% advance in October.
The latest reading puts inflation below the Bank of Canada’s 2% target and gives the institution leeway to continue lowering interest rates to try and spur economic growth across the country.
During November, slower price growth was broad-based throughout Canada, with prices for travel tours and mortgage interest costs contributing the most to the deceleration.
Year-over-year, gasoline prices fell 0.5% in November compared with October. On a monthly basis, gasoline prices were unchanged during November.
Excluding gasoline prices, the all-items Consumer Price Index rose 2% in November, following a 2.2% gain in the previous month of October.
Prices for food purchased from stores rose 2.6% year-over-year in November, down slightly from a 2.7% increase in October.
Compared with November 2021, grocery prices are now up 20%, said Statistics Canada. Similarly, shelter prices have increased 19% in the last three years.
On a monthly basis, inflation in Canada was unchanged in November, following a 0.4% monthly increase in October.