Inflation cools to 1.9% in November in ‘broad-based’ slowing
globalnews.caThe 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.
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.
The loonie has largely faltered over recent weeks compared to the U.S. dollar as the re-election of Donald Trump south of the border sparks uncertainty and a flood of investor dollars into the American greenback.
“Today’s drop in the Canadian dollar is the result of several headwinds that it has faced this year, including falling inflation, weak economic growth, and now political uncertainty, which together have sent it to the lowest level since March 2020,” said Kyle Chapman, market analyst on foreign exchange at Ballinger Group, in an email to Global News on Tuesday.
On a month-to-month basis, StatCan said 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
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