Canada: Inflation stable at near nine-year high in November
Consumer prices increased a seasonally-adjusted 0.35% over the previous month in November, a weaker increase than October’s 0.56% rise. Looking at the details of the release, prices for food and beverages, and transport increased at a softer rate in November relative to the previous month.
Inflation came in October’s 4.7% in November—the joint-highest inflation rate since February 2003. Annual average inflation rose to 3.1% in November (October: 2.7%). Finally, core inflation fell from 3.8% in October to 3.6%.
Commenting on the latest inflation reading, Royce Mendes, senior economist at CIBC World Markets, noted:
“The inflation numbers were more muted than we and the Bank of Canada had feared. As a result, there are even fewer reasons to rush a rate hike in January, when the economy could be dealing with another harsh wave of Covid.”