CBJ.ca - The Canadian Business Journal: Inflation up 2% in December

Inflation up 2% in December
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CBJ - January 24 - Consumer prices rose 2.3 per cent in the 12 months to
December, following a 2.9 per cent increase in November, according to a report
by Statistics Canada.
The 0.6 percentage point difference was led by a slower increase in gasoline
prices as well as declines for the purchase of passenger vehicles. A slower
year-over-year increase for food was also a factor.
The cost of gasoline rose 7.6 per cent in the 12 months to December, after
advancing 13.5 per cent in November. Gasoline prices have declined steadily on a
monthly basis since June.
On a year-over-year basis, prices for the purchase of passenger vehicles fell
0.2 per cent in December following a 1.8 per cent rise the month before. On a
monthly basis, prices declined 2.3 per cent as manufacturers continued to offer
discounts on various vehicles, including new 2012 models.
Consumers paid 4.4 per cent more for food in the 12 months to December,
following a 4.8 per cent increase the month before. The year-over-year change
for food purchased from stores eased in December to a five per cent gain, from
5.7 per cent in November.
On a year-over-year basis, prices rose in all eight major components in
December. Transportation and food continued to post the largest increases.
The cost of transportation went up 3.3 per cent in the 12 months to December,
after rising 5.7 per cent in November. The December gain was the smallest
increase in over a year. The slower rise was largely attributable to a slower
year-over-year increase in gasoline prices as well as price decreases posted for
the purchase of passenger vehicles.
Food prices rose 4.4 per cent in the 12 months to December. Consumers paid more
for food purchased from stores as prices increased for common staples, including
meat (5.3 per cent), fresh vegetables (11.1 per cent) and bread (8.8 per cent).
Shelter costs rose 1.8 per cent in the 12 months to December. This followed a
1.5 per cent increase posted in November. The index for electricity went up 5.4
per cent, led by price increases in Alberta.