Canada’s inflation rate holds steady at 3.1% in November

Canada’s annual inflation rate holds steady at 3.1 per cent in November, according to a report released by Statistics Canada on Tuesday.

The November consumer price index report says the largest contributors to the inflation rate continue to be mortgage interest costs, food purchased from stores and rent.

Services saw prices unchanged last month as lower prices for cell phone services offset higher prices for travel tours.

The agency reported partially good news as the price of groceries continued to rise, but it did so at a more gradual pace, slowing for the fifth month in a row.

Grocery prices were up 4.7 per cent from last year, which signifies a slowdown compared to 5.4 per cent in October.

The agency reported a few exceptions, including meat, preserved vegetables and sugar.

READ MORE: Bank of Canada holds key interest rate steady at 5%

The Bank of Canada held its key interest rate steady at five per cent earlier this month, but it’s not a clear path to return to the central bank’s two per cent target.

Economists forecast the central bank to cut interest rates sometime next year, although another rate hike has not been ruled out.