Statistics Canada: inflation has slowed

Statistique Canada: l’inflation a ralenti

Photo: Jacques Nadeau Le Devoir
The price of gasoline at the pump declined by 5.4% compared to last year, due to lower global oil prices.

The growth of consumer prices has slowed down considerably in the last month and inflation is down to 1.7 % due to the attenuation of the pressures related to the rising price of gasoline, said on Wednesday Statistics Canada.

These most recent data from the federal agency showed the lowest inflation from one year to the other since January 2018. The reading of the rise in price was also much lower than that of 2.4 % in the month of October. Inflation for September was 2.2 %.

The price of gasoline at the pump declined by 5.4% compared to last year, due to lower global oil prices. It is their first decline in year-over-year gasoline for June 2017. As a result, price growth has slowed in all provinces. Excluding gasoline prices, inflation rose to 1.9 % in November.

The average of the three indicators of core inflation for the agency, which exclude more volatile, such as the price of gasoline, has slowed from 2% in October to 1.9 % last month. Each of these three reference values are now 1.9 %.

The Bank must also take into account another concern : a strong deceleration of the wage growth during the last six months. The national unemployment rate is near its lowest level in 40 years since more than a year, but despite this strengthening of the labour market, wage growth has slowed instead of accelerating.

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