Black Friday discounts and falling fuel costs ease inflation, but shelter prices continue to rise
The Consumer Price Index (CPI) rose 1.9 percent year-over-year in November, slowing from a 2.0 percent increase in October, according to Statistics Canada.
Slower price growth was seen across most categories, with travel tour prices and the mortgage interest cost index contributing significantly to the deceleration.
Excluding gasoline, the all-items CPI rose 2.0 percent in November, following a 2.2 percent gain in October.
Food prices at grocery stores increased 2.6 percent in November compared with a year earlier, slightly lower than October’s 2.7 percent rise.
However, grocery costs remain significantly higher, up 19.6 percent compared with November 2021. Similarly, shelter prices eased slightly in November but remain 18.9 percent higher than in November 2021.
Rent prices rose 7.7 percent year-over-year in November, accelerating from October's 7.3 percent. This increase was most pronounced in Ontario (+7.4 percent), Manitoba (+7.9 percent), and Nova Scotia (+6.4 percent).
Meanwhile, the mortgage interest cost index grew at a slower pace for the 15th consecutive month, rising 13.2 percent in November compared with 14.7 percent in October. Together, rent and mortgage interest costs contributed significantly to the overall CPI increase.
Gasoline prices fell year-over-year by 0.5 percent in November, a smaller decline compared to October’s 4.0 percent drop. Month-over-month, gasoline prices remained unchanged.
The smaller yearly decline resulted from a base-year effect, as gasoline prices dropped 3.5 percent month-over-month in November 2023.
Price changes varied regionally. While most provinces saw slower or flat price growth, Atlantic Canada experienced accelerated inflation due to higher fuel oil prices, which are more commonly used for home heating in the region.
November’s Black Friday promotions contributed to monthly declines in certain categories. The household operations, furnishings, and equipment index dropped 0.9 percent, influenced by lower prices for cellular services (-6.1 percent) and furniture (-2.1 percent).
The clothing and footwear index fell 0.8 percent month-over-month, led by declines in women’s clothing (-0.8 percent) and children’s clothing (-4.9 percent). The drop in children’s clothing prices was the largest on record for November.
Travel service prices declined at a slower pace in November, down 6.7 percent year-over-year compared to October’s 7.1 percent drop.
This smaller decline was driven by a sharp increase in traveller accommodation prices, particularly in Ontario, where hotel prices surged 23.7 percent year-over-year and 11.0 percent month-over-month. The monthly increase in Ontario coincided with high-profile concerts.
Travel tour prices, however, dropped 12.0 percent year-over-year in November, compared with a 6.5 percent decline in October. The greater decline resulted from a base-year effect, with higher demand and prices for US destinations in November 2023.
The overall CPI was unchanged in November on a monthly basis, following a 0.4 percent increase in October. Seasonally adjusted, the monthly CPI rose 0.1 percent.
