The latest release of the Consumer Price Index (CPI) for November 2023 by Statistics Canada reveals a continued upward trend, with the CPI rising 3.1% year-over-year, mirroring the increase observed in October. This stability conceals a nuanced economic landscape characterized by fluctuating sector performances.
The transportation sector experienced a 0.1% decrease in November, contributing to the overall stability in the CPI. Notably, lower prices for cellular services and fuel oil offset the upward pressure imposed by increased travel tour expenses. Excluding food and energy, the CPI recorded a 3.5% increase, slightly higher than the 3.4% gain in October.
Canadians faced the brunt of escalating mortgage interest costs, which surged by 29.8% year-over-year, alongside significant increases in the prices of food purchased from stores (+4.7%) and rent (+7.4%). These factors were the primary contributors to the overall rise in the CPI for November.
While the prices for food purchased from stores continued to increase in November (+4.7%), the pace slowed compared to October (+5.4%). Notably, this marked the fifth consecutive month of deceleration, with various food components experiencing broad-based slowdowns. However, prices for meat, preserved vegetables, and sugar and confectionery increased at a faster pace.
Service prices maintained their elevated status in November, registering a 4.6% year-over-year increase, consistent with October. The surge was fueled by a substantial acceleration in travel tour prices (+26.1%), largely attributed to events in destination cities in the United States. This was counteracted by a decline in cellular services prices, with consumers benefiting from promotions ahead of Black Friday.
In a notable development, Statistics Canada has released an info-sheet titled “Measuring pure price change: Exploring Shrinkflation in the Consumer Price Index,” shedding light on the phenomenon of shrinkflation.
Year over year, prices increased across all provinces in November, albeit at a slower pace in six provinces compared to October. Energy prices fell by a greater extent in November (-5.7%) compared to October (-5.4%), primarily due to lower fuel oil prices. The temporary suspension of the federal carbon levy on fuel oil played a role in this decline.