Canada’s Consumer Price Index (CPI) maintained its previous month’s year-over-year growth rate of 3.1% in November, according to Statistics Canada in their monthly report.
This steadiness in CPI was influenced by increased travel tour costs, counterbalanced by slower food price growth and reduced prices in cellular services and fuel oil. Excluding energy and food, the CPI saw a slight rise to 3.5% from October’s 3.4%.
Statistics Canada says key contributors to the annual CPI increase included significant rises in mortgage interest costs (29.8%), store-bought food (4.7%), and rent (7.4%). On a monthly scale, the CPI recorded a modest 0.1% increase in November, mirroring October’s growth rate. Notably, gasoline prices declined less sharply in November (-3.5%) than in October (-6.4%), impacting the monthly CPI.
Grocery prices, though still escalating, showed a deceleration in November at 4.7%, compared to 5.4% in October. This slowdown, consistent over the past five months, was mostly due to lower price increases in non-alcoholic beverages, fresh vegetables, and other food preparations. In contrast, meat, preserved vegetables, and sugar products experienced accelerated price hikes.
Service prices remained high in November, with a 4.6% year-over-year increase, consistent with October’s rate. A significant factor was the 26.1% surge in travel tour prices, largely due to events in U.S. cities.
Cellular service prices saw a notable decrease, with consumers paying 22.6% less for plans in November compared to the same month in 2022, influenced by pre-Black Friday promotions.
Across Canada’s provinces, all experienced year-over-year price increases in November, though six provinces reported a slower pace compared to October.
Energy prices continued their downward trend, with a 5.7% year-over-year decrease in November, driven mainly by a 23.6% drop in fuel oil prices. This was further influenced by the suspension of the federal carbon levy on fuel oil. Electricity prices, however, rose by 8.2% year over year in November, moderated by higher rates in Ontario due to increased time-of-use rates.