Statistics Canada, the Canadian federal department commissioned with producing statistics about Canadian provinces and federal government economic, social and demographic performance announced an inflation rate of 2% in Friday’s Daily report.

“Consumer prices slowed to 2.0% in the 12 months to November 2008, down from the 2.6% and 3.4% increases recorded in October and September respectively. The slowdown in November was due primarily to gasoline prices, which were 14.4% below November 2007 levels, and far offset increases for food and shelter items,” said the report.

The slowdown in price growth is blamed on a slowing economy and a strong depreciation of the Canadian dollar to the U.S. dollar seen in November 2008, a change of 20% from November 2007.

Bigger cities saw higher than average inflation rates this month, with Vancouver and Toronto both showing a rate of approximately 2.3%. Nunavut reported a growth in their inflation rate this period, the only province to do so. Province averages in B.C. and Ontario respectively were very close to the average, at 2.0 and 2.1%.

Rising food prices are blamed for the increase in prices as of this period; excluding food CPI growth is cited at just under 1.0%.

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