Canada’s Inflation Rate Slows Slightly
SAINT JOHN — Canada’s inflation rate slowed in December to its lowest rate in almost a year, according to Statistics Canada.
The Consumer Price Index (CPI) stood at 6.3 percent last month, down from 6.8 percent in November.
“The headline CPI grew at a slower pace largely due to slower growth in prices for gasoline,” StatsCan said in its report.
Consumers paid 13.1 percent less for gasoline in December compared with November, the largest monthly decline since April 2020.
On a yearly basis, prices for gasoline rose three percent in December compared to 13.7 percent in November.
Meanwhile, grocery prices continue to rise much more quickly than the average rate of inflation.
Canadians paid 11 percent more for groceries in December compared to a year earlier. That was down from 11.4 percent in November.
Growth in prices for durable goods slowed to 4.7 percent in December after a 5.3 percent increase in November.
Prices for household appliances and furniture rose at a slower pace in December, according to StatCan.
“These slowdowns in price growth occurred amid easing supply chain pressures and lower shipping costs, as well as softer demand,” said the report.
Yearly price growth also slowed for passenger vehicles for the third month in a row, which StatCan said may reflect slowing demand for used vehicles.
Meanwhile, prices for personal care supplies and equipment grew 9.9 percent year over year, the largest increase in nearly four decades.
“Price growth has trended upward since April 2021 as a result of broad-based increases among personal soap, toiletry items and cosmetics, oral-hygiene products and other personal care supplies and equipment,” said StatCan.
Regional inflation numbers
Prices rose at a slower pace in December compared with November in all provinces, according to StatCan.
Atlantic provinces saw the largest deceleration, which was largely the result of lower prices for furnace fuel oil.
New Brunswick had one of the lowest inflation rates among the provinces at 6.3 percent in December, tied with Quebec.
Ontario and Alberta were the only two provinces with lower inflation rates at six percent.
Prince Edward Island (7.7 percent) and Nova Scotia (7.6 percent) were among the highest, only behind Manitoba (8.0 percent).
Brad Perry is the Regional News Director for New Brunswick at Acadia Broadcasting, Huddle content partners.