Canoe

Thursday, December 14, 2000

Inflation rate rises

OTTAWA (CP) -- Higher energy prices pushed the annual inflation rate in November to 3.2 per cent, up from 2.8 per cent in October, Statistics Canada said Thursday.

Energy costs rose on average 18 per cent last month, led by higher gasoline prices, which jumped 19 per cent from November 1999.

Natural gas prices also spiked, rising more than 40 per cent -- the largest increase since 1949.

Excluding energy prices, the consumer price index rose 1.8 per cent in November, up from 1.5 per cent during September and October.

Consumers also paid more for mortgage rates and rent, dining out and telephone bills, the agency noted.

Month over month, the index rose 0.3 per cent, mostly due to higher automobile prices.

Fewer manufacturers rebates and dealer discounts pushed the cost of new cars up 4.6 per cent in November from a year earlier.

Higher prices for fresh vegetables also contributed to the increased cost of living.

Natural gas prices rose 5.5 per cent in November from October, mostly from a jump in energy rates in Ontario.

Prices for fresh vegetables rose 8.3 per cent after bad weather cut production in the U.S. southwest.

Gasoline prices rose 0.9 per cent in November, after a 0.7 per cent decrease the previous month. Prince Edward Island posted the largest increase at 4.2 per cent while drivers in British Columbia, Alberta and Saskatchewan saw lower prices at the pumps.

Consumers paid less for hotels and other traveller accommodation as well as clothing in November.

-- Rachel Gibson (rgibson@hotmail.com), December 14, 2000