Canadian Inflation down to 2% in November

December 26, 2010 by

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Inflation in Canada slipped to 2% last month as prices of most consumer goods either dropped from last year or simply had a moderation in growth. October inflation percentage was at a high of 2.4%, which was also a two year high.
The only sign of inflation was a 0.1% jump in prices from October to November, which is well below the jump of 0.4% from September to October.Inflation also dropped for the first time, since Ontario and BC introduced the HST in July.
With small changes in the inflation, most analysts believe that Bank of Canada will keep the interest rates unchanged in next month”s announcement, while most analysts believe that the rates will stay unchanged until at least the Summer of 2011.
Prices of many key items such as food, electricity, gasoline and home goods cost rose very minimally in November, as opposed to the previous month. Furthermore the cost of goods such as clothing, vegetables and mortgage rates cost less than at the same time the previous year. Statistics Canada, who is the reporting agency for inflation numbers also reports that the price of gasoline rose 7.2% from the same time last year. No wonder, this makes total sense as the gas within the Toronto are is at $1.14. Also women’s clothing was down 6.9%, mortgage interest rates were down 2.7% and the cost of furniture was down 2.9% as well, all based in comparison to the same time the previous year.
All provinces & territories inflation rates:
PEI – 1.2 (2.3 in October)
Nfld. & Labrador – 2.2 (3.0 in October)
Nova Scotia – 2.2 (2.9 in October)
Quebec – 1.1 (1.4 in October)
Ontario – 3.0 (3.4 in October)
Manitoba – 1.1 (1.2 in October)
Saskatchewan – 2.0 (2.1 in October)
Alberta – 0.1 (1.2 in October)
BC – 2.2 (2.4 in October)
Whitehorse/Yukon – 1.6 (1.9 in October)
N.W.T. – 2.1 (1.8 in October)
Nunavut – 0.7 (-0.4 in October)
 
 
Source: The Globe & Mail – Business

 

 

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Comments

  1. youngandthrifty says:
    December 27, 2010 at 1:23 AM

    Gas has been a killer lately! (Not gas from me, but gas at the pump hehe) It's reaching $1.20/L here in BC, how is it where you are at? Are you in AB, I forget.. :)

    Other than that, I hear the boxing day sales are pretty good this year compared to previous years.

    • Fox - financefox.ca says:
      December 27, 2010 at 8:37 AM

      Yes I agree gas has been up like crazy. Here in Toronto is been around $1.14/L. As for the boxing day sales, I really don't think boxing day has real sales, a couple door crashers, thats it. True sales I think are in early Jan. As they want to get rid of the 2010 merchandise. I am not sure if you noticed, but prices of a lot of things, such as tv's, furniture, houshold items (waher/dryer, dishwasers etc) have dropped like crazy. Here you can buy a 42" or 46" LCD TV for under $500. Crazy huh! Because about a year ago or so, those same TVs were around the $900 mark. Have you noticed?

      • youngandthrifty says:
        December 28, 2010 at 12:44 AM

        Yes I have! TV's are so cheap now. I heard it's because they shipped a surplus of TV's up into Canada, combined with our strong dollar…

        I remember friends buying a huge honkin' 40" LCD TV (that is massive and definitely not able to put that up on a wall mount) about 5 years ago for over $2500.

        Electronics and technology is one thing we can count on for DEFLATION! :)

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    January 3, 2011 at 5:46 AM

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