Annual inflation accelerated to 1%, from 0.7% in October, Statistics Canada reported in Ottawa on Wednesday. Economists had expected 0.8%, the median forecast from a Bloomberg survey.
Canada’s annual inflation rate remains well below the central bank’s 2% target, in line with policymakers’ opinion that price pressures will remain low for years to come as businesses hit by the restrictions to contain the COVID-19 epidemic are struggling to raise prices.
That said, the November reading was the strongest since the start of the pandemic, largely due to the effects of housing costs, which contributed the most to the increase.
On a monthly basis, prices rose 0.1 percent, compared to a stable forecast in the Bloomberg survey.
The average of core inflation measures – often seen as a better indicator of underlying price pressures – held steady at 1.7% in November. Economists predicted that the values of core inflation would remain unchanged.
– With the help of Erik Hertzberg.