Canadian Consumer Price Index increased 2.1% y/y

The Consumer Price Index (CPI) increased 2.1% on a year-over-year basis in November, following a 1.4% increase in October. The all-items excluding gasoline index rose 1.5% year over year in November after increasing 1.3% in October.

Prices were up in seven of the eight major CPI components in the 12 months to November, with the transportation and shelter indexes contributing the most to the increase. The clothing and footwear index declined on a year-over-year basis.

Transportation prices rose 5.9% on a year-over-year basis in November, following a 3.0% increase in October. Gasoline prices contributed the most to this acceleration, rising 19.6% year over year in November, after increasing 6.5% the previous month. The increase was partly attributable to higher crude oil prices in November, as well as a monthly decline one year earlier. The purchase of passenger vehicles index also accelerated to 3.6% on a year-over-year basis in November, following a 1.9% rise in October. The November increase was partly attributable to the greater availability of new 2018 model year vehicles.