- Swiss National Bank
Canada's consumer price inflation slowed in November, largely owing to falling gasoline prices. Canadian November inflation decelerated to 2%, after rising to 2.4% in October, Statistics Canada reported. The fresh data surprised to the downside, as economists had estimated a 2.2% pace. The Bank of Canada's core CPI, which strips out eight volatile components, dropped to 2.1%, down from 2.3% recorded in October, and against economists' forecasts of 2.5%. The main contributor to cooling inflation was the decline in gasoline prices, spurred by weaker energy prices. Canadians paid 5.9% less at the gas stations in November on average over the past year, marking the lowest price levels since February 2011. The data reinforced BoC's concerns that lower oil prices are putting the Canadian inflation outlook in peril. Lower energy prices are projected to continue to have an impact on inflation figures in the near future.
In the meantime, a separate report showed Canadian retail trade remained relatively unchanged in October. Sales stayed at $42.8 billion, after soaring 0.8% in the preceding month, Statistics Canada said. Meanwhile, core retail trade, which strips out volatile automobile and parts sales, increased 0.2%, in line with market expectations.
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