What is affecting Canada’s overall inflation rate
Shelter costs increased at a slower annual pace of 4.6%, while rent price inflation accelerated to 7.7%. Grocery prices continued to grow faster than overall prices, rising 2.6% from a year ago.
“Inflation decelerated slightly in November, ahead of what will be a volatile period for CPI readings thanks to the temporary reduction in GST on certain items,” said CIBC senior economist Andrew Grantham in a note to clients. The federal government announced last month it would waive the 5% sales tax on some products between Dec. 14 and Feb. 15. Meanwhile, he said the impact of the Taylor Swift concerts on inflation was weaker than expected. “While there was a pop in hotel prices, there was no noticeable change in airline fares, restaurant prices or other areas,” Grantham said.
Inflation and interest rates
Inflation has hovered around the Bank of Canada’s 2% target for several months now, clearing the path for the bank to lower interest rates. After delivering a second consecutive half-percentage point rate cut last week, governor Tiff Macklem signalled there would be more rate reductions coming, but that the central bank was to likely decrease the size of cuts. The central bank’s key interest rate now stands at 3.25%.
Will there be more interest rate cuts to come from the BoC?
Douglas Porter, chief economist at BMO Capital Markets, said the latest report points to a more gradual path for rate cuts in 2025. “While we expect a further trim on Jan. 29, another meaty set of core readings next month will prompt some chattering about a pause, especially with the (U.S.) Fed seemingly headed that way in January and the loonie on the ropes,” he said in a note to clients.
Tuesday’s report showed the Bank of Canada’s preferred core measures of inflation held steady at 2.6% and 2.7%. The overall slowdown in inflation comes as goods price inflation grinds to a halt, while high wage growth and rising housing costs continue to push up service prices.
Check out the rates below to see the current status of mortgage rates in Canada. To check variable rates, simply change the “rate type” drop down menu.
powered by 
What inflation looks like across Canada
Here’s a list of November inflation rates for Canadian provinces. Canada’s annual inflation rate was 1.9% in November, Statistics Canada says. Here’s what happened in the provinces (previous month in brackets):
- Newfoundland and Labrador: 1.2% (1.1%)
- Prince Edward Island: 1.8% (1.3%)
- Nova Scotia: 1.7% (1.5%)
- New Brunswick: 2% (1.8%)
- Quebec: 1.5% (1.6%)
- Ontario: 1.8% (2%)
- Manitoba: 0.9% (1.1%)
- Saskatchewan: 1.6% (1.6%)
- Alberta: 2.8% (3%)
- British Columbia: 2.3% (2.4v)
How different Canadian cities are experiencing inflation
Here’s a list of November inflation rates for selected Canadian cities. Canada’s annual inflation rate was 1.9% in November, Statistics Canada says. The agency also released rates for major cities, but cautioned that figures may have fluctuated widely because they are based on small statistical samples (previous month in brackets):
- St. John’s, N.L.: 1.1% (1.3%)
- Charlottetown-Summerside: 2.1% (1.7%)
- Halifax: 2.1% (1.8%)
- Saint John, N.B.: 1.8% (1.8%)
- Quebec City: 1.4% (1.4%)
- Montreal: 1.9% (2%)
- Ottawa: 1.9% (2.1%)
- Toronto: 2.3% (2.3%)
- Thunder Bay, Ont.: 2.2% (2.1%)
- Winnipeg: 1.2% (1.3%)
- Regina: 2.1% (2%)
- Saskatoon: 1.8% (1.7%)
- Edmonton: 2.7% (2.9%)
- Calgary: 3% (3.3%)
- Vancouver: 2.3% (2.2%)
- Victoria: 2.1% (2%)
- Whitehorse: 2% (2.2%)
- Yellowknife: 1.8% (2.4%)
- Iqaluit: 1.4% (1.5%)
The Canadian Press is Canada’s trusted news source and leader in providing real-time stories. We give Canadians an authentic, unbiased source, driven by truth, accuracy and timeliness.
2.% + thispercent the previous month ++++! so how much for the year has inflation rose? Do we needto dig for gold? Eat bugs? Live in tent cities? No we need a volunteer type society without government Goven means control ment means the mind! Mind control needs to be done away with!
@ Gary Labute, The monthly inflation numbers are not additive. It’s the annual inflation compared to the same month the previous year.