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.