Inflation slows to 1.9% as rent accelerates, interest costs ease, and gasoline stabilizes
Statistics Canada reported that the Consumer Price Index (CPI) increased 1.9 percent year over year in November, down from 2.0 percent in October.
The broad-based slowdown reflected lower price growth in travel tours and mortgage interest costs. Excluding gasoline, the all-items CPI rose 2.0 percent in November, compared to a 2.2 percent increase in October.
Food prices purchased from stores rose 2.6 percent year over year, slightly below October’s 2.7 percent increase.
Despite this moderation, grocery prices remained high, up 19.6 percent compared with November 2021. Shelter costs also eased but were still 18.9 percent higher than November 2021 levels.
On a monthly basis, the CPI remained flat in November after a 0.4 percent increase in October. Seasonally adjusted, the CPI edged up 0.1 percent.
Year over year, gasoline prices fell 0.5 percent in November, compared to a 4.0 percent decline in October. The smaller drop resulted from a base-year effect as prices had fallen 3.5 percent month over month in November 2023. Gasoline prices were unchanged on a monthly basis.
The shelter component rose 4.6 percent year over year in November, slightly below October’s 4.8 percent. Rent prices accelerated to 7.7 percent, up from 7.3 percent in October, with notable increases in Ontario (+7.4 percent), Manitoba (+7.9 percent), and Nova Scotia (+6.4 percent).
Mortgage interest costs grew at a slower pace for the 15th consecutive month, rising 13.2 percent in November compared to 14.7 percent in October. Both rent and mortgage interest costs were the largest contributors to the 12-month CPI increase.
Black Friday and related sales in November contributed to lower prices in specific sectors. On a monthly basis, the household operations, furnishings, and equipment index fell 0.9 percent, with cellular services dropping 6.1 percent and furniture prices declining 2.1 percent.
Similarly, the clothing and footwear index decreased 0.8 percent monthly, led by lower prices for women’s clothing (-0.8 percent) and children’s clothing (-4.9 percent). The decline in children’s clothing marked the largest recorded for November.
Prices for travel services declined 6.7 percent year over year in November, less than the 7.1 percent drop in October.
Higher traveller accommodation prices (+8.7 percent) contributed to the slower decline, particularly in Ontario, where hotel prices surged 23.7 percent year over year and increased 11.0 percent monthly due to high-profile concerts.
Meanwhile, prices for travel tours fell further, down 12.0 percent year over year in November compared to 6.5 percent in October. This decline reflected a base-year effect driven by higher demand and prices for US destinations in November 2023.
Atlantic Canadian provinces saw price acceleration in November, while other regions experienced slower or flat price growth. Fuel oil and other fuels, which are more commonly used for home heating in Atlantic Canada, were key factors driving the regional disparity.
Year over year, price growth slowed in five provinces, while other areas exhibited varied trends.
