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Canada’s inflation rate fell to 1.9 per cent last month, down from two per cent in October and slightly below forecasts.
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Inflation has remained either at or below the Bank of Canada’s two per cent target since August.
Statistics Canada said on Tuesday the deceleration in November was driven by a drop in prices for all eight major components in the consumer price index basket.
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Shelter cost growth slowed to 4.6 per cent as a result of the 15th consecutive month of declining mortgage costs. Rent price growth was still strong at 7.7 per cent in November. Overall, shelter prices have increased by 18.9 per cent compared to three years ago.
The cost of food purchased in stores rose 2.6 per cent year-over-year in November, after rising 2.7 per cent the month before. Gasoline prices were down by 0.5 per cent, a slower deceleration than the four per cent decline the previous month.
Black Friday sales also contributed to lower prices during the month, with prices of household items dropping by 0.9 per cent. Additionally, costs of travel fell by 12 per cent in November.
Core inflation, the measures the Bank of Canada prefers to look at when making its monetary policy decisions, remained above the two per cent target last month. CPI-trim rose by 2.7 per cent and CPI-medium came in at 2.6 per cent in November, the same as the month before. CPI-common rose by two per cent, down from 2.2 per cent reported in October.
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Year-over-year, goods inflation remained flat at zero per cent and services inflation rose by 3.5 per cent.
• Email: jgowling@postmedia.com
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