By Robb M. Stewart
OTTAWA--Consumer price growth in Canada held steady last month as consumers paid less for services but faced the sharpest rise in grocery costs since the end of 2023 and prices at the pump declined less sharply.
The consumer-price index rose 2.2% from a year earlier in November, matching the pace the month before, Statistics Canada said Monday. That was slightly softer than the 2.3% economists expected, though it left annual inflation just above the Bank of Canada's 2% goal for a third straight month after August's acceleration.
For the month, consumer prices increased a modest 0.1% , or 0.2% on a seasonally adjusted basis, the data agency said.
The inflation report is the first since the central bank last week opted to hold its policy interest rate steady and one of two before its next meeting in late January. Policymakers have signaled further rate cuts are unlikely following a string of moves lower over a roughly 16-month stretch, projecting inflation is likely to remain near target while the economy manages only modest growth through next year.
Core prices excluding volatile food and energy costs eased on a year earlier, rising by 2.8% after a 2.7% advance the month before.
The trimmed mean and weighted median measures of underlying inflation preferred by the Bank of Canada cooled to the slowest pace since January, averaging 2.8% annually compared with 3.0% in October. That put it below the top end of the 1% to 3% window the central bank aims for the first time since June.
Prices for services overall rose at a slower rate, with costs for travel tours falling sharply for the month and compared with last year at a time when fewer Canadians are heading to the U.S. amid heightened trade tensions and uncertainty over U.S. policies. Prices for traveller accommodation also fell more sharply when compared with a year earlier, which coincided with Taylor Swift's popular tour coming to Toronto.
Rent also rose at a slower pace that it did last year, with increases cooling in most regions of the country despite remaining elevated.
Countering those easing pressures for Canadians, prices for food bought at stores increased 4.7% on last year, the biggest increase since last December, with costs up for fresh fruit, beef and coffee. On a monthly basis, grocery prices rose 1.9% in November, the largest monthly-over-month increase since January 2023.
Gasoline prices rose in November, but were still about 7.8% below a year ago, thanks to the end of federal consumer carbon tax in April. Still, that was less steep than the drop in gas prices seen in October.
Excluding gasoline, CPI inflation rose 2.6% annually for a third consecutive month.
The Bank of Canada's governing council has said it considers its current policy rate to be about right to keep inflation close to 2% while helping the economy adjust to President Trump's tariffs. Still, it cautioned uncertainty remains high.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
12-15-25 0903ET
