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The annual inflation rate in Canada experienced a decline to 1.9 percent in November, according to a report released by Statistics Canada on Tuesday. This decrease is attributed to a widespread reduction in price increases, notably in areas such as travel and mortgage expenses.
In comparison, the inflation rate stood at 2 percent in October. Month-over-month analysis indicated that gasoline prices remained stable in November.
Additionally, grocery prices saw an annual rise of 2.6 percent, showing a slight decline from the previous month’s figures. The impact of Black Friday sales was also significant, contributing to lower pricing in various sectors, particularly for cellular services and furniture items. Remarkably, there was a recorded monthly drop of 4.9 percent in the cost of children’s clothing, marking the steepest decline for November on record.
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Although rental prices have increased in certain provinces such as Ontario, Manitoba, and Nova Scotia, Statistics Canada noted that the cooling off in the mortgage interest cost index has contributed to a moderation in shelter-related inflation for the month. While mortgage costs continue to rise, they are escalating at a slower rate compared to the previous year.
Currently, mortgage costs and rent remain the primary factors driving inflation higher in Canada.
In related news, the strike involving Canada Post is set to conclude on Tuesday, with workers being mandated to return to their posts.
Further developments include the resignation letter from Chrystia Freeland concerning her position in the Trudeau cabinet.
Despite the notable cooling of overall inflation in recent years, the cost of living in Canada continues to be a concern. StatCan reports that grocery prices have surged by 19.6 percent over the past three years, while shelter costs have risen by 18.9 percent during the same timeframe.
The latest inflation report emerges in the context of a struggling Canadian economy, as the Bank of Canada reduces its key interest rate to bolster growth in anticipation of 2025.
On the day the inflation data was published, the Canadian dollar briefly fell below 70 cents against the U.S. dollar, which could heighten the costs of imports, particularly affecting the prices of vehicles and certain grocery items.
Further updates will follow…
Stay tuned for more financial news and insights.
Source
globalnews.ca