Canada November CPI 2.1% Y/Y From 1.4%; Ex Food/Energy 1.8%>

By Courtney Tower 

     OTTAWA (MNI) - Canadian inflation jumped to 2.1% year-over-year in 

November from 1.4% in October, largely on a 19.6% hike in gasoline 

prices, Statistics Canada reported Thursday. 

     The  2.1% level, highest since January this year, was very near the 

2.0% expected in an MNI survey of analysts. 

     On a seasonally adjusted monthly basis, the Consumer Price Index 

for November was up 0.5%, also the largest rise since January this year. 

     For the three measures of core inflation preferred by the Bank of 

Canada, CPI-common was up 1.5% year-over-year, CPI-median up 1.9% and 

CPI-trim up 1.8%. The latter two were the highest increases since 

October of 2016. 

     --GENERAL RISE 

     Prices for the 12-month change in the CPI were up in seven of the 

eight major components, with the transportation (+5.9%) and shelter 

(+1.2%) indexes contributing the most to the increase. The clothing and 

footwear index (-0.2%) registered the only annual-rated decline. 

     The CPI increase year-over-year was registered throughout the 

country, in all provinces. Manitoba (+3.2%) and Saskatchewan (+3.7%) 

recorded the largest increases. 

     The goods index rose 0.9% on the month and 2.0% on the year. The 

services index declined 0.1% on the month and was up 2.3% on the year. 

     All items excluding food and energy were flat on the month and up 

1.8% year-over-year. 

     The 5.9% rise in the transportation index on the annual basis 

followed a 3.0% rise in October. Gasoline prices contributed the most to 

this index, rising 19.6% on the year after increasing by 6.5% in 

October. 

     --CRUDE, CARS, UP 

     Statistics Canada said part of the transportation index increase 

also was due to higher crude oil prices in November, and to a 3.6% rise 

in prices for the purchase of passenger vehicles. 

     The food index was up 1.6% year-over-year. Month-over-month, this 

index was up 0.8% in November, the largest monthly gain since January 

2016. There were higher prices for the household operations, furnishings 

and equipment index, although furniture prices within the index 

declined. 

     Seasonally adjusted month-over-month, seven of the eight major 

components increased while the health and personal care index (-1.0%) 

declined. All items excluding food and energy rose 0.2% on the month, as 

they had the previous month. 

     --MNI Ottawa Bureau; email: yali.ndiaye@marketnews.com 

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