Canada’s annual inflation rate remained at 2.2% in November, unchanged from October, Statistics Canada reported on Monday. The steady rate was primarily driven by rising food prices, which increased at their fastest pace in more than two years.
A year-on-year drop in gasoline and shelter costs partially offset the food price surge. November marked the first month since March that core inflation measures, which exclude volatile items like food and gasoline, came in below the Bank of Canada’s 3% upper control range.
Analysts had forecast annual inflation at 2.3%. Monthly inflation rose 0.1%, in line with expectations, down slightly from 0.2% in October.
The subdued annual rate since April is partly attributed to the removal of a carbon levy on gasoline, keeping fuel prices lower on a year-over-year basis. Gasoline costs increased 1.8% from October but were 7.8% lower compared with November 2024. Excluding gasoline, November’s CPI was 2.6%.
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Food prices rose 4.2% year-on-year, the highest since December 2023. Grocery prices jumped 4.7%, while restaurant food costs climbed 3.3%. Statistics Canada attributed the increases to adverse weather conditions and U.S. import tariffs, particularly affecting coffee and beef prices across North America.
Most other components of the CPI cooled from the previous month, suggesting that inflation pressures outside food remain moderate. “Central bankers can take comfort that a stagflationary environment is not emerging,” said Royce Mendes, Managing Director & Head of Macro Strategy at Desjardins.
The Bank of Canada’s preferred core measures, CPI-median and CPI-trim, both edged down to 2.8% in November from 3% in October, signalling price pressures are easing.
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Following the data release, the Canadian dollar strengthened slightly, trading at 1.3761 to the U.S. dollar (72.67 U.S. cents), while yields on Canada’s two-year government bonds declined 2.3 basis points to 2.486%.
Esther Ososanya is an investigative journalist with Pinnacle Daily, reporting across health, business, environment, metro, Fct and crime. Known for her bold, empathetic storytelling, she uncovers hidden truths, challenges broken systems, and gives voice to overlooked Nigerians. Her work drives national conversations and demands accountability one powerful story at a time.
