Analysis

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Consumer prices rose 0.8% in the 12 months to November, following a 1.2% gain in October. The November increase was the smallest year-over-year gain in the Consumer Price Index (CPI) since October 2009.

The slower increase in the CPI in November compared with October was attributable to smaller year-over-year price increases for gasoline, as well as price decreases for the purchase of passenger vehicles.

Gasoline prices rose 0.4% in the 12 months to November, following a 4.0% increase in October. The largest year-over-year increase occurred in Quebec (+2.4%), and the biggest decline was in British Columbia (-4.7%).

Prices for the purchase of passenger vehicles decreased 1.8% in the 12 months to November. This decline was attributable to smaller monthly price increases in November 2012 compared with November 2011.

12-month change in the major components

Consumer prices rose in six of the eight major components in the 12 months to November, the exceptions being transportation, and clothing and footwear.

Prices for transportation fell 0.2% year over year in November, after rising 1.7% in October. The 12-month decline in November was led by price decreases for the purchase of passenger vehicles. Smaller year-over-year price increases for gasoline in November compared with October were also a factor.

Food prices increased 1.7% on a year-over-year basis in November following an increase of 2.0% in the previous month. Consumers paid 2.1% more for food purchased from restaurants and 4.3% more for meat. In contrast, prices declined 5.8% for fresh vegetables.

Shelter costs increased 1.0% in the 12 months to November following a 0.9% increase in October. Homeowners' replacement cost, property taxes and rent increased on a year-over-year basis. Conversely, mortgage interest cost decreased 3.0% and natural gas prices declined 6.8%.

12-month change in the provinces

Consumer prices rose at a slower year-over-year rate in November compared with October in all provinces except Alberta. The CPI for Prince Edward Island and for Quebec increased the most in the 12 months to November, while British Columbia increased the least.

Consumer prices in both Prince Edward Island and Quebec increased 1.5% in the 12 months to November, after rising 2.1% and 1.9% respectively in the previous month. Both provinces posted larger year-over-year price increases for gasoline relative to the national average.

Prices in British Columbia rose 0.1% in the 12 months to November, following a 0.5% increase in October. Of all the provinces, British Columbia posted the largest year-over-year price decrease for gasoline. Consumers in the province also paid less in homeowners' replacement cost and for the purchase of passenger vehicles.

In Alberta, consumer prices rose 0.6% in the 12-months to November matching the increase in the previous month. Natural gas prices continued to decrease on a year-over-year basis in November, but at a slower rate than in October. Gasoline prices declined in November after increasing in October.

Seasonally adjusted monthly CPI decreases

On a seasonally adjusted monthly basis, the CPI decreased 0.2% in November after increasing 0.2% in October.

The seasonally adjusted index for transportation declined 1.2% in November following a 0.8% increase in October. The food index rose 0.1% in November after increasing 0.4% the previous month. The clothing and footwear index increased 0.3% after registering no change in October.

Non-seasonally adjusted monthly CPI decreases

On a monthly basis and before seasonal adjustment, the CPI fell 0.2% in November, after a 0.2% increase in October.

The November CPI was led by a 5.7% monthly price decrease for gasoline. Consumers in all provinces paid less for gasoline in November compared with October. Gasoline prices declined the most in Alberta and British Columbia.

Prices for transportation fell 1.0% in November after increasing 0.2% in October. While gasoline prices declined, consumers paid 1.4% more for the purchase of passenger vehicles.

Prices for clothing and footwear fell 2.3% in November after rising 1.5% in October.

The cost of food rose 0.7% in November following a 0.2% increase in October. Notable price increases were recorded for fresh fruit (+5.1%) and fresh vegetables (+4.2%), while prices decreased for bakery and cereal products (-0.7%).

On a provincial basis, consumer prices fell in all provinces, with the largest declines (-0.5%) in Prince Edward Island and Alberta.

Bank of Canada's core index

The Bank of Canada's core index rose 1.2% in the 12 months to November, following an increase of 1.3% in October.

On a month-to-month basis and before seasonal adjustment, the core index posted no change in November after increasing 0.3% in October.

On a monthly basis, the seasonally adjusted core index posted no change in November after increasing 0.1% in October.