Canada CPI inflation for November YoY 3.1% versus 2.9% estimate

<ul><li>Prior month 3.1% YoY</li><li>CPI inflation YoY 3.1% versus 2.9% estimate</li><li>MoM CPI inflation 0.1% versus -0.1% estimate. Prior month 0.1%</li></ul><p>Core measures</p><ul><li>CPI Bank of Canada Core YoY 2.8% vs 2.7% last month</li><li>CPI Bank of Canada Core MoM 0.1% versus 0.3% last month</li><li>Core CPI MoM SA 0.3% vs 0.3% last month</li><li>Trimmed 3.5% versus 3.5% last month</li><li>Median 3.4% versus 3.4% has month. Revised from 3.6%</li><li>Common 3.9% versus 4.2% last month</li></ul><p>Highlights: </p><p>Grocery prices continue to rise</p><ul><li>Overall Grocery Price Increase Slows: In November, the rate of increase in grocery prices slowed to 4.7%, compared to 5.4% in October.</li><li>Five-Month Trend: This represents the fifth consecutive month of year-over-year slowdown in grocery price growth.</li><li>Significant Contributors to Slowdown:<ul><li>Non-Alcoholic Beverages: Prices decreased by 0.6%.</li><li>Fresh Vegetables: Prices increased, but at a lower rate of 2.5%.</li><li>Other Food Preparations: Prices increased by 6.4%.</li></ul></li><li>Influencing Factors: A combination of international and domestic factors.</li><li>Categories with Faster Price Increases:<ul><li>Meat: Prices rose by 5.0%.</li><li>Preserved Vegetables and Vegetable Preparations: Prices increased by 5.8%.</li><li>Sugar and Confectionery: Prices saw a significant rise of 8.3%.</li></ul></li></ul><p>Service prices remain elevated:</p><ul><li>Services Prices Remain Elevated: In November, service prices rose by 4.6% year over year, consistent with the increase in October.</li><li>Significant Increase in Travel Tours Prices:<ul><li>November Spike: Prices for travel tours increased dramatically by 26.1% year over year.</li><li>Compared to October: This represents a significant jump from the 11.3% increase in October.</li><li>Main Reason: Largely due to events in destination cities in the United States during November.</li></ul></li><li>Decline in Cellular Services Prices:<ul><li>Significant Price Drop: Prices for cellular services dropped by 22.6% compared to November 2022.</li><li>Influence of Promotions: Reductions were influenced by industry-wide promotions ahead of Black Friday, offering cheaper cell phone plans and bonus data.</li></ul></li></ul><p>Energy prices fall to greater extend year on year:</p><ul><li>Overall Decline in Energy Prices: Energy prices decreased more in November (-5.7%) than in October (-5.4%).</li><li>Significant Drop in Fuel Oil Prices:<ul><li>Dramatic Fall in November: Prices for fuel oil and other fuels decreased by 23.6%.</li><li>Comparison with October: This follows a 12.6% decline in October.</li><li>Influencing Factor: The reduction was partly due to the temporary suspension of the federal carbon levy on fuel oil.</li></ul></li><li>Increase in Electricity Prices:<ul><li>November Rise: Electricity prices increased by 8.2% year over year.</li><li>Compared to October: This was a higher increase than the 6.7% in October.</li><li>Primary Cause: The rise was mainly due to higher prices in Ontario (+7.0%), linked to increased time-of-use rates.</li></ul></li></ul>

This article was written by Greg Michalowski at www.forexlive.com.