20 December 2011, 18:00  Canadian consumer prices crept slightly higher

Canadian consumer prices crept slightly higher in November compared to the previous month, official data showed Tuesday morning. On a seasonally adjusted monthly basis, consumer prices increased 0.1 percent from October to November, after rising 0.3 percent from September to October. The modest increase was in line with expectations. Consumer prices rose 2.9 percent in the 12 months to November, matching the increase in October. While the 12-month change in gasoline prices continued to ease, the year-over-year increase in food prices remained high. Gasoline prices were up only 13.5 percent annually, after advancing 18.2 percent in October. However, shoppers paid 4.8 percent more for food in the 12 months to November, the largest increase since July 2009. The Bank of Canada's closely watched measure of core consumer prices, stripping out volatile components, edged up 0.1 percent on-month, and was up 2.1 percent in the 12 months to November, roughly in line with the BoC's target for annual inflation. The Bank has kept its benchmark interest rate at a record-low one percent since September of 2010.

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