Excluding energy and food costs -which are the two expenditure items most affected by inflation-, prices increased by 5.3% in December 2022 compared to the same period in 2021.
Although the rise in prices remains strong in the country, it eased in December, according to analysts at Statistics Canada.
A slowdown largely attributable to a 13.1% drop in fuel prices at the pump in December compared to November, particularly due to a drop in the price of crude oil against the backdrop of a global economic slowdown and an outbreak of COVID-19 that has affected China’s economy.
2020, says Statistics Canada. Year after year, gasoline prices rose 3% in December after increasing by13.7% in November.”,”text”:”This is the steepest monthly decline since April 2020, says Statistics Canada. Year-over-year gasoline prices rose 3% in December after rising 13.7% in November.”}}”>This is the steepest monthly decline since April 2020, Statistics Canada says. Year-over-year, gasoline prices rose 3% in December after rising 13.7% in November.
In addition to gasoline, fuel oil prices fell 14.8% month-on-month.
Slight slowdown in the increase in the shopping cart
Also heavily affected by inflation, the price of the family basket also experienced some relief in December.%) compared to November (+11.4%)”,”text”:”Year-over-year, prices of store-bought food decreased slightly in December (+11%) compared to November (+11.4%)”}}” >Year-over-year, store-bought food prices slowed slightly in December (+11%) compared to November (+11.4%)notes Statistics Canada.
However, this slowdown was offset by higher prices for fresh vegetables, which cost 13.6% more in December after rising 11.2% in November, still on an annual basis.%) and other fresh vegetables (+11.7%), due to the unfavorable weather conditions observed in the producing regions”,”text”:”An acceleration in the growth rate of vegetable prices was generalized, including tomatoes (+21.9%) and other vegetables fresh (+11.7%), due to the unfavorable weather conditions observed in the producing regions”}}”>An acceleration in the growth rate of the prices of vegetables, including tomatoes (+21.9%) and other fresh vegetables (+11.7%), was generalized due to the unfavorable weather conditions observed in the producing regions.we learn in the Daily from this morning.
Year-over-year, grocery price growth has hovered around 11% in Canada for the past 5 months.
In addition to food, the growth in the price of durable goods – such as household appliances – also slowed down last month, falling at an annual rate from 5.3% in November to 4.7% in December. This is the third consecutive monthly slowdown in the durable goods category.
Among the things that rose the fastest in December, Statistics Canada reports increases in mortgage interest rates, the price of clothing, footwear and personal care items that rose 9.9% year-over-year. The most marked increase in the price of this type of product since February 1983, underlines the federal agency.
After touching an annual maximum of 8.1% last June, theCPIit had basically sat still all fall. Inflation was 6.9% in September and October before falling to 6.8% in November and 6.3% in December. Since peaking in June, inflation has fallen by 1.8 percentage points in the past seven months.
The Bank of Canada will closely watch the data released on Tuesday morning. The central bank raised its benchmark rate seven times in 2022, taking it to 4.25% in December. The Bank of Canada is trying to bring annual inflation back to a 1-3% range.
You are due to announce your decision on your key rate change next week.
In December, the central bank argued that
inflation remains too high and near-term inflation expectations remain high. And the longer consumers and businesses wait for inflation to stay above target, the more entrenched high inflation is likely to become.he wrote at the time to justify his decision.
It should be noted that increases in the key rate, the Bank of Canada’s main remedy against inflation, have no immediate effect on the economy. It often takes months to measure the true impact.
In the survey on consumer expectations released Monday by the Bank of Canada, we also learned that the inflationary spike in recent months and the successive rises in interest rates have led Canadians to reduce their spending in addition to postponing major purchases.
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