Canada: Inflation stabilizes in November
December 20, 2011
In November, consumer prices increased a seasonally adjusted 0.1% over the previous month, which was below the 0.3% increase seen in October. The monthly price rise mainly reflected higher prices in the transportation category, which added 0.5% in November (October: +1.3% month-on-month). Annual headline inflation remained unchanged at October's 2.9%, which came in exactly in line with market expectations. In particular, energy inflation continued to slow and decelerated from an 11.7% increase in October to a 9.1% rise in November. Currently, inflation remains within the Central Bank's 1.0 percentage point tolerance margin around its 2.0% target. Annual core inflation, which excludes volatile items such as gasoline and fresh food, remained unaltered at October's 2.1%. The Bank of Canada expects headline inflation to average 2.9% in 2011 and 1.4% in 2012.