Canada’s annualized inflation rate fell slightly to 6.8% in November but still came in higher than economists had expected.
Statistics Canada reported that the Consumer Price Index (CPI) increased 6.8% in November from a year earlier, which was down from an annualized rate of 6.9% in October but higher than economist expectations for inflation of 6.7%.
On a monthly basis, inflation in Canada gained 0.1% in November. Economists had expected no change in monthly CPI.
The higher-than-expected reading will likely put added pressure on the Bank of Canada to continue raising interest rates to bring annualized inflation back down to its 2% target.
The latest CPI report shows that price pressures remain significant across Canada despite signs that the economy is slowing, and domestic demand is slumping.
Two key measures that Canada’s central bank watches closely, the trim and median core rates, rose in November, averaging 5.15% from an upwardly revised 5.1% in October.
Prices for shelter and groceries were the main drivers of inflation in November. Mortgage interest costs jumped 14.5%, the biggest increase since 1983, while the rent index rose 5.9% higher.
Prices for food purchased from stores rose 11.4% year-over-year, following an 11% increase in October.
Canada’s core inflation rate, which strips out volatile food and energy prices, held steady at 5.8% in November, the same level as in October of this year.
The Bank of Canada’s next interest rate decision is scheduled for January 25, 2023.
