Inflation rose to 1.9% in November in Canada

Housing costs rose at a slower annual rate in November (4.6%) than in October (4.8%), while rental price inflation accelerated to 7.7%. .

Food prices continued to grow faster than overall prices, increasing 2.6% from a year ago.

Inflation has been hovering around the 2% target for several months now, paving the way for the Bank of Canada to lower interest rates.

After making a second straight half-percentage-point cut last week, Bank of Canada Governor Tiff Macklem indicated there would be more rate cuts, but the central bank would probably reduce its magnitude.

The central bank’s key interest rate now stands at 3.25%.

Data released Tuesday showed the Bank of Canada’s core inflation measures remained stable at 2.6 and 2.7 per cent.

The general slowdown in inflation comes as goods price inflation comes to a halt, while strong wage growth and rising housing costs continue to push up service prices.

In Quebec, annual inflation increased from 1.6% in October to 1.5% in November. Growth in the consumer price index also slowed in Ontario, Manitoba, Alberta and British Columbia.

Inflation accelerated compared to October in the four Atlantic provinces, while it remained stable in Saskatchewan.