Canada prices rise in November 2020 as housing costs soar

Consumer prices in Canada continued to climb in November, up 1% as compared with a year ago mainly due to rising housing costs, the government reported on Wednesday, December 16. 

The increase was faster than the 0.7% hike seen in October, and contrasted with analyst expectations that prices would remain flat.

Prices rose in 6 of the 8 major categories monitored by Statistics Canada, with a 1.9% increase in shelter and food prices.

Increased household spending on durable goods pushed prices for furniture up 2.8% and appliances up 2.9%, remaining higher than before the pandemic. 

According to Statistics Canada, “physical distancing rules encouraging Canadians to stay home may have prompted increased spending on big-ticket items for the home,” despite a decrease in the household savings rate compared to the early months of the pandemic. 

Rents continued to rise in November, following a trend observed since August. 

New housing prices rose for the 9th consecutive month due to strong demand and limited inventory, combined with high costs for building materials. 

In contrast, mortgage costs were down for the 7th consecutive month. 

Gasoline prices also fell by 11.9% year-on-year in November due to weak demand as pandemic-related restrictions tightened. 

On a month-to-month basis, the consumer price index rose 0.3% in November. – Rappler.com