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| - Consumer prices in Canada continued to climb in November, up one percent as compared with a year ago mainly due to rising housing costs, the government reported Wednesday. The increase was faster than the 0.7 percent hike seen in October, and contrasted with analyst expectations that prices would remain flat. Prices rose in six of the eight major categories monitored by Statistics Canada, with a 1.9 percent increase in shelter and food prices. Increased household spending on durable goods pushed prices for furniture up 2.8 percent and appliances up 2.9 percent, 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 ninth consecutive month due to strong demand and limited inventory, combined with high costs for building materials. In contrast, mortgage costs were down for the seventh consecutive month. Gasoline prices also fell by 11.9 percent 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 percent in November. jl/st/sst
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