Inflation in Canada rose an annualized 2.2% in November, matching the increase seen in October of this year.
Excluding volatile gasoline prices, inflation in Canada rose 2.6% year-over-year in November for a third consecutive month. On a seasonally adjusted monthly basis, inflation gained 0.2%.
Statistics Canada said that the Consumer Price Index (CPI), which measures inflation, remained unchanged in November largely because prices for services increased at a slower pace.
Lower prices for travel tours and traveller accommodation, in addition to slower growth for rent prices, put downward pressure on inflation across Canada.
Offsetting the slower growth in services were higher prices for goods, with grocery prices continuing to rise at a fast clip.
In November, prices for services rose 2.8% year-over-year, compared with a 3.2% increase in October.
Year-over-year, prices for travel tours declined 8.2% in November following a 2.6% increase in October. Prices for traveller accommodation fell 6.9% during November from a year ago.
Statistics Canada said that while rent prices remained elevated in November, price growth slowed in most regions of the country.
Prices for food purchased from stores in Canada accelerated in November, rising 4.7% on an annual basis after increasing 3.4% in October.
The food increase in November was the largest since December 2023 and driven by higher prices for fresh fruit (up 4.4%), beef (up 17.7%), and coffee (up 27.8%).
On a monthly basis, grocery prices in Canada rose 1.9% in November, the largest month-over-month increase since January 2023.
Turning to gas, prices at the pump fell at a slower pace year-over-year in November (down 7.8%) compared with October (down 9.4%).
On a monthly basis, gas prices rose 1.8% amid refinery disruptions across North America.
The Bank of Canada most recently declined to adjust interest rates, saying current levels are supportive of economic growth without sparking a rise in inflation.
