Consumer prices in Canada increased 1.7% year-over-year in November, according to Statistics Canada data released December 19
This is the smallest 12-month increase since January, down from 2.4% in October.
The decline was related to falling energy prices. Gas prices dropped 9.4% in November alone, leading to a 1.3% year-over-year drop in the energy price index.
“This report was largely as expected with seasonal weakness combining with collapsing energy prices to pull CPI down sharply,” BMO Capital Markets’ Benjamin Reitzes said in a note to investors.
“With oil prices still under pressure, we remain comfortable with our call that the Bank of Canada will stay on the sidelines through Q1.”
Pushing inflation up was a jump in mortgage interest costs, which jumped 7.2% year-over-year – the highest increase in more than a decade.
Consumer prices in British Columbia increased 2.4% year-over-year in November, which is seven basis points higher than the national average. Ontario comes in at a distant second place with 1.8%.