Statistics Canada announced Wednesday that Canada saw an increase in inflation of 6.8% in November. This was despite gas prices falling, while food prices rose at an even faster pace.
November’s increase in the Consumer Price Index (CPI) marked a 0.1 per cent increase from October, Statistics Canada reported, or seasonally adjusted 0.4 per cent.
In October, 6.9% of consumers’ prices rose due to higher fuel prices and higher mortgage interest rates.
The Bank of Canada has taken one of its most aggressive tightening measures in recent history due to stubborn inflation. Since March, the central bank raised interest rates by 400 basis points, making its benchmark rate at 4.25 percent, which is the highest since 2008. The central bank recently raised its benchmark rate by 50 basis point on Dec. 7. However, it indicated that the tightening cycle could be slowing down due to signs of slowing in the economy.
More to follow.
Alicja Siekierska, a senior reporter at Yahoo Finance Canada, is Alicja Siekierska. Follow her on Twitter @alicjawithaj.