The Consumer Price Index rose by 3.1% in the past November compared to the same period last year. This is an increase similar to that recorded in October (+3.1%).

This past month’s inflation slump disappoints the expectations of many economists, especially experts at TD Bank and RBC, who had anticipated inflation to slow down in November, which would have brought the rate back to the target range set by the Bank of Canada (the central bank) between 1% and 3%.

Among the elements that contributed to keeping inflation steady in November, the Canadian Statistics Agency highlights the increase in organized trip prices year over year (+26.1%). But above all, the agency points to the rise in mortgage interest costs (+29.8%), food prices in stores (+4.7%), and rents (+7.4%).

Nevertheless, year-over-year price growth slowed in many key sectors last month, notably heating oil, mobile phone services, and foodstuffs.

It is noted that food prices purchased in stores continued to rise last month (+4.7%), but at a lower rate than in October (+5.4%), as food components recorded a general slowdown.

It is also noted that this is the fifth consecutive month in which a slowdown in price growth in grocery stores year over year has been observed, according to the Canadian Statistics Agency.

Excluding food and energy, the Consumer Price Index rose by 3.5% in November, according to the federal agency.

On another note, heating oil and other fuel prices recorded a significant decrease of 23.6% year over year in the second to last month of the year, after a 12.6% decrease in October. The temporary suspension of the federal carbon pricing on heating oil contributed to this decrease, as specified by the Canadian Statistics Agency.

It is worth noting that the province of Quebec in central Canada recorded a significant decline in the inflation rate by 0.6 percentage points, resulting in a year-over-year decrease from 4.2% in October to 3.6% in November. However, despite the decrease, the inflation rate in Quebec was the highest in the country last month, ahead of Ontario in central Canada (3.3%) and British Columbia in western Canada (3.2%).