Canadian Inflation Down to 2.3% in December


Consumer prices rose 2.3% in the 12 months to December, following a 2.9% increase in November. The 0.6 percentage point difference was led by a slower increase in gasoline prices as well as declines for the purchase of passenger vehicles. A slower year-over-year increase for food was also a factor.

The cost of gasoline rose 7.6% in the 12 months to December, after advancing 13.5% in November. Gasoline prices have declined steadily on a monthly basis starting in June.

On a year-over-year basis, prices for the purchase of passenger vehicles fell 0.2% in December following a 1.8% rise the month before. On a monthly basis, prices declined 2.3% as manufacturers continued to offer discounts on various vehicles, including new 2012 models.

Consumers paid 4.4% more for food in the 12 months to December, following a 4.8% increase the month before. The year-over-year change for food purchased from stores eased in December to a 5.0% gain from 5.7% in November.

On a year-over-year basis, prices rose in all eight major components in December. Transportation and food continued to post the largest increases.


TradingEconomics.com, Statistics Canada
1/20/2012 5:39:56 PM