Posted 12/19/2023, 2:48:07 PM
Canadian Inflation Holds Steady at 3.1%, Keeping Pressure on Central Bank
- Canadian inflation unexpectedly remained at 3.1% in November, higher than expected and giving the central bank reason to maintain high interest rates
- The Canadian dollar surged to its highest level since August on the inflation news, while bond yields also rose
- Key measures of underlying inflation like trim and median core rates were unchanged at 3.45% annually, faster than expected
- Monthly inflation rose 0.1%, versus expectations for a 0.1% decrease
- The high inflation is being driven by housing costs, but the central bank expects slowing growth ahead to bring down price pressures