Inflation Falls to 1.9%, but Rent and Food Costs Still Rising

Canada’s inflation rate dropped to 1.9 per cent in November, marking a 10-basis-point decline from last month. The overall rate of inflation remains firmly within the Bank of Canada’s target range, according to new data from Statistics Canada.

Stats Canada says the decline was aided by lower gas prices, Black Friday discounts, and reduced mortgage costs following recent central bank interest rate cuts. However, the Consumer Price Index highlights ongoing challenges for many Canadians, particularly renters and those grappling with rising food costs.

Rental prices increased by nearly 7.7 per cent compared to November 2023, far outpacing overall inflation. Grocery prices rose 2.6 per cent year-over-year and have climbed by 19.6 per cent since 2021. The price of beef recently reached a record high, with ground beef reaching an average $13.46 per kg ($6.11 per pound).