Canada's annual inflation reading unexpectedly came in at 3.1% in November, due to slower growth in food prices and cheaper telecommunications services and fuel oil. This data is based on data released by Statistics Canada which was released a while ago.
Analysts interviewed by Reuters had expected inflation to slow to a reading of 2.9% from 3.1% in October. On a monthly basis, the consumer price index rose 0.1%, compared to expectations for a 0.1% decline.
This headline inflation is still in line with the Bank of Canada's forecast which expects inflation to be around 3.5% until mid-2024, before slowly easing towards the bank's target of 2% at the end of 2025.
CPI-median and CPI-trim – two of the three main measures of inflation used by the BoC also remained stable at 3.4% and 3.5%.
The bank has kept interest rates at their highest level in 22 years at 5% in three policy-setting meetings and has maintained that it is too early to discuss interest rate cuts.
The price of food bought from shops rose by 4.7% in November, slower than the 5.4% recorded in October, while energy prices fell by 5.7% compared to a 5.4% decrease in the previous month, it said. by Statistics Canada.
The Canadian currency continued to strengthen against the US dollar with USD/CAD down 0.33% to trade at 1.3353.
