Canada: Core Inflation Rate Falls

Cheaper new cars, a result of the surging Canadian dollar, lowered Canada’s core inflation rate last month, Statistics Canada reported. The core portion of the country’s consumer price index, which excludes volatile items like gasoline and mortgage interest, was 1.6 percent in November, compared with 1.8 percent in October. The agency attributed that unexpected decline to a 3.9 percent drop in new car prices and lease rates. Canada’s overall inflation rate grew slightly in November to 2.5 percent, compared with 2.4 percent in October. Much of that was attributed to a 17.6 percent increase in gasoline prices.