Inflation cools to 1.9% in November in ‘broad-based’ slowing

The annual rate of inflation slowed to 1.9 per cent in November, Statistics Canada said Tuesday.

The agency cited a “broad-based” slowing in price hikes, particularly on travel tours and on mortgage costs, contributing to the cooling off.

That’s down from an inflation rate of two per cent in October. On a month-to-month basis, gasoline prices were steady in November.

Prices in food at the grocery store were up 2.6 per cent annually, also down a tick from October’s figures.

Black Friday sales also helped to drive prices down last month, particularly on cellular services and furniture. A monthly decline of 4.9 per cent in the cost of children’s clothing was the largest ever on record for November, the agency said.

While rents were higher annually in provinces including Ontario, Manitoba and Nova Scotia, StatCan said that a cooldown in the mortgage interest cost index helped to tame shelter inflation last month. While mortgage interest costs are still rising, they’re not rising as much as they were a year ago.

Mortgage costs and rent are still the two biggest contributors pushing inflation higher in Canada.

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Though cheaper costs for travel tours were helping to cool inflation last month, StatCan did note that the cost of renting a room in Ontario rose markedly in November, around the same time Taylor Swift’s Eras Tour came to Toronto.

The cost to rent a hotel room in November rose 23.7 per cent annually, compared to 1.3 per cent in October.

“On a monthly basis, prices for traveller accommodation in Ontario were up 11.0 per cent, the swiftest monthly increase ever recorded for the month of November, coinciding with a series of high-profile concerts,” the agency wrote.

And while overall inflation has cooled significantly over recent years, cost of living remains elevated in Canada. Compared to three years ago, grocery prices are 19.6 per cent higher, while shelter costs are up 18.9 per cent over the same period, according to the StatCan.

The November inflation data comes as the Canadian economy struggles and the Bank of Canada trims its key interest rate, looking to stimulate growth heading into 2025.

The Canadian dollar briefly dipped below 70 cents to its U.S. counterpart on Tuesday before the inflation data was released. That puts pressure on the cost of imports from south of the border, often affecting prices on autos and some groceries.

More to come…

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