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2025-12-15 21:43:38
[Canadian Inflation Shows Stickiness, Food Prices Surge to Two-Year High, Core Indicators Cool for the First Time] ⑴ Canada's annualized inflation rate remained unchanged at 2.2% in November, primarily driven by food prices, which have risen to a two-year high. ⑵ The year-on-year decline in gasoline prices continued to weigh on the overall consumer price index. Excluding gasoline, the November CPI rose 2.6% year-on-year. ⑶ Crucially, the core inflation indicator, excluding volatile items, fell below 3% for the first time since March, below the upper limit of the Bank of Canada's inflation control range. ⑷ The Bank of Canada's preferred core indicators, the median and cut-off mean CPI, both fell to 2.8% in November, the first time they have fallen below 3% since Trump's tariffs took effect. ⑸ Overall food prices rose 4.2% year-on-year, with grocery prices rising 4.7% and restaurant dining costs rising 3.3%. Adverse weather and trade policies are generally considered major factors driving up food prices. (6) Despite signs of cooling in core inflation, the continued strong rise in food prices suggests that the internal structure of inflation remains sticky, which may make central banks cautious when considering a policy shift.
