Inflation rate hits 12-month low

Inflation in Ottawa in November dropped 20 basis points to 2.5 per cent, according to Statistics Canada figures

This is the lowest threshold for the 12-month average change in the consumer price index in 2011. The highest was four per cent.

Statistics Canada does not break out local drivers, instead focusing on provincial figures. In November, inflation in Ontario fell at the same rate as in Ottawa, to 2.5 per cent from 2.7 per cent in October.

The major drivers in Ontario were food prices, which at 6.7 per cent were the highest in Canada and well above the national rate. Gasoline also greatly influenced inflation, with an increase of 11.6 per cent.

"Typically, we've seen that Ontario gasoline price increases have been above the Canadian year-over-year change, with the exception of the last two months," said Amanda Wright, a CPI analyst with Statistics Canada, in an OBJ interview.

Shelter also saw a small increase of 0.9 per cent. Provincial declines were posted in electricity (3.9 per cent), women's closthing (4.6 per cent) and mortgage interest costs (one per cent.)

Ontario's inflation was at the lower end of provinces and territories in Canada. Only British Columbia (2.3 per cent) and Nunavut (2.2 per cent) came in lower. The highest was Newfoundland and Labrador, at 4.1 per cent.

Nationally, Canada's inflation rate was unchanged at 2.9 per cent, although the agency pointed out food prices rose sharply month-over-month.

The 4.8-per-cent national gain in food prices was the largest since July 2009, the agency said. Energy also rose substantially, by 13.5 per cent.

Shelter and car insurance also rose, while declines were seen in home mortgage and interest, natural gas and furniture, among other items.

http://www.obj.ca/Local/2011-12-20/article-2842461/Inflation-rate-hits-12month-low/1