Inflation in Canada edged down in November to 1.9 per cent, as price increases were lower than expected for most goods, the national statistical agency said Tuesday.
The cost of travel tours and gasoline fell in the month, said Statistics Canada. Mortgage interest costs decelerated for a 15th month in a row, but rents increased at an accelerated pace.
Black Friday discounting was deeper than normal, while there was also a pop in hotel prices in Ontario due to Taylor Swift concerts.
Analysts said the inflation reading came in slightly below expectations, but warned the next few months are likely to be volatile and unpredictable amid a sales tax holiday and US President-elect Donald Trump’s tariff threats.
Trump has vowed to impose 25 per cent tariffs on imports from Canada and Mexico when he returns to the White House in Jan. 6, accusing the top US trading partners of not doing enough to stop the flow of illegal migrants and drug trafficking.
The governor of Bank of Canada, Tiff Macklem, after cutting its key lending rate last week to 3.25 per cent, said Canadians should “anticipate a more gradual approach to monetary policy” going forward.
Analysts said the latest inflation data supports the central bank’s position, but that could change if the country plunges into a recession.
