Close X
Wednesday, December 18, 2024
ADVT 
National

Canada’s inflation rate down a tick to 1.9% in November

Darpan News Desk The Canadian Press, 17 Dec, 2024 11:03 AM
  • Canada’s inflation rate down a tick to 1.9% in November

Inflation edged down slightly to 1.9 per cent in November as price growth continued to stabilize in Canada.

Statistics Canada’s consumer price index report Tuesday showed inflation was down from two per cent in October.

Shelter costs increased at a slower annual pace of 4.6 per cent, while rent price inflation accelerated to 7.7 per cent.

Grocery prices continued to grow faster than overall prices, rising 2.6 per cent from a year ago.

"Inflation decelerated slightly in November, ahead of what will be a volatile period for CPI readings thanks to the temporary reduction in GST on certain items," said CIBC senior economist Andrew Grantham in a note to clients. The federal government announced last month it would waive the five per cent sales tax on some products between Dec. 14 and Feb. 15.

Meanwhile, he said the impact of the Taylor Swift concerts on inflation was weaker than expected.

"While there was a pop in hotel prices, there was no noticeable change in airline fares, restaurant prices or other areas," Grantham said.

Inflation has hovered around the Bank of Canada's two per cent target for several months now, clearing the path for the bank to lower interest rates.

After delivering a second consecutive half-percentage point rate cut last week, governor Tiff Macklem signalled there would be more rate reductions coming, but that the central bank was to likely decrease the size of cuts.

The central bank’s key interest rate now stands at 3.25 per cent.

Douglas Porter, chief economist at BMO Capital Markets, said the latest report points to a more gradual path for rate cuts in 2025.

"While we expect a further trim on Jan. 29, another meaty set of core readings next month will prompt some chattering about a pause, especially with the (U.S.) Fed seemingly headed that way in January and the loonie on the ropes," he said in a note to clients.

Tuesday’s report showed the Bank of Canada’s preferred core measures of inflation held steady at 2.6 and 2.7 per cent.

The overall slowdown in inflation comes as goods price inflation grinds to a halt, while high wage growth and rising housing costs continue to push up service prices.

 

MORE National ARTICLES

Manitoba government promises trade office in U.S. capital to boost economy

Manitoba government promises trade office in U.S. capital to boost economy
The Manitoba government is planning to open a trade office in Washington, D.C., in the new year to deal with threatened United States tariffs and promote investment opportunities in provincial sectors such as mining and aerospace. The move would bring Manitoba in line with Ontario, Alberta and some other provinces that have full-time trade representatives in the U.S. capital.

Manitoba government promises trade office in U.S. capital to boost economy

'Sleeping with the enemy': Mistrial in B.C. sex assault over Crown dating paralegal

'Sleeping with the enemy': Mistrial in B.C. sex assault over Crown dating paralegal
The B.C. Supreme Court has ordered a new trial for a man convicted of sexual assault after he learned his defence lawyer's paralegal was dating the Crown prosecutor during his trial. Justice Veronica Jackson ruled last week in Courtenay, B.C., that Cameron Gagne should get a new trial because his lawyer, Eric Chesterley, and prosecutor Nicholas Grabe failed to tell the court about the relationship. 

'Sleeping with the enemy': Mistrial in B.C. sex assault over Crown dating paralegal

B.C. woman on the lam in $60,000 Alberta meat scam arrested in Ontario

B.C. woman on the lam in $60,000 Alberta meat scam arrested in Ontario
A B.C. woman charged in connection with a 60-thousand-dollar meat scam last year has been arrested in Ontario. RCMP say Krysta-Lyn Williams of Penticton, was arrested in Picton, Ontario, last week with the assistance of Ontario Provincial Police.

B.C. woman on the lam in $60,000 Alberta meat scam arrested in Ontario

Fatal crash on Trans Canada Highway

Fatal crash on Trans Canada Highway
Two people are dead and a third is in critical condition after a single-vehicle crash on the Trans Canada Highway in British Columbia. The RCMP in Ashcroft, west of Kamloops, say they were called to the scene Sunday at around 10:15 p.m.

Fatal crash on Trans Canada Highway

Fog advisory lifts for Vancouver area, but near-zero visibility could return

Fog advisory lifts for Vancouver area, but near-zero visibility could return
A fog advisory that covered much of Metro Vancouver and the Fraser Valley has been lifted by Environment Canada.  The thick blanket of fog that left near-zero visibility in some areas was created by a ridge of high pressure over parts of southern B.C.

Fog advisory lifts for Vancouver area, but near-zero visibility could return

Taylor Swift fans flock to BC Place, days before Eras Tour lands in Vancouver

Taylor Swift fans flock to BC Place, days before Eras Tour lands in Vancouver
Security fencing is going up around BC Place stadium in preparation for the final days of Taylor Swift's Eras Tour this weekend, while dozens of Swifties gather near by to feel the vibe and "breathe the same air as Taylor Swift." Staff wearing security jackets are busy off-loading fencing and installing it around the stadium for the Swift shows from Dec. 6 to 8. 

Taylor Swift fans flock to BC Place, days before Eras Tour lands in Vancouver