Price growth continues to slow in Canada. The Consumer Price Index (CPI) rose from 2% in October to 1.9% in November, Statistics Canada reported.
Posted at 8:38 a.m.
Updated at 9:16 a.m.
As the holidays approach, the slowdown in inflation had been anticipated by most economists and it will be well received by Canadian consumers. The slowdown in prices is widespread, including at the grocery store, where prices are up 2.6%, down slightly from 2.7% in October.
The slowdown in inflation is mainly due to the decline in the cost of mortgage interest and the price of organized trips, according to Statistics Canada. In Quebec, the Consumer Price Index also slowed from 1.6% in October to 1.5% in November.
Although price increases at the grocery store are slowing, prices have increased by 19.6% since November 2021. Housing prices have increased by 18.9% since 2021, notes Statistics Canada.
In November, rental price growth accelerated to 7.7%, compared to October, while the cost of mortgage interest slowed to 15e consecutive month thanks to reductions in interest rates.
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Discounts associated with Black Friday in November lowered prices on several products, including furniture, cell phone service, clothing and shoes.
The price of travel is down slightly, but the cost of accommodation, which is part of this category, is up sharply by 8.7%. The reason? The very significant increase in the price of hotel rooms in Ontario, which welcomed American megastar Taylor Swift last month. The price of hotel rooms jumped 23.7% in November in Ontario, following a 1.3% increase in October.
Core measures of inflation, which exclude the most volatile elements, remained stable. These measures, which are monitored by the Bank of Canada, have remained virtually unchanged in recent months.
The Bank of Canada now believes it has brought inflation under control, after five rapid cuts in its key rate, which now stands at 3.25%.
