Invest in Canada

Gas prices drive down inflation

by investor on 19/12/08 at 4:28 pm

Canada’s inflation data for November provided a couple of hard-core surprises Friday, with economists calling some of the numbers “staggering,” “stunningly robust,” and “a shocker.”

Overall inflation continued to ease last month, as gasoline prices kept sputtering, with the annual rate falling to 2 per cent from 2.6 per cent October and 3.4 per cent in September, Statistics Canada said. As well, on a seasonally adjusted basis, consumer prices fell 0.3 per cent from October to November, half the dip experienced between September and October.

However, what grabbed economists’ attention is that the Bank of Canada’s index of core inflation, which excludes volatile items such as energy and food, unexpectedly rose 2.4 per cent over the 12 months to November, Statscan noted.

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