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As in the US CPI data reported yesterday, consumer prices in other countries were restrained last month by lower energy costs. Canada's All-Items index was flat on the month, seasonally adjusted, and up 1.6% on the year. This latter is the smallest 12-month increase since June 2002. A retreat in the 12-month rise from 2.0% in September was entirely accounted for by energy. Excluding that sector, the 12-month rate was 1.9% in both September and October.
· In France, the entire CPI was up 0.3% from September to October and 2.2% from October 2002. During the 12 months, energy prices actually fell 0.4%, so that the 12-month rate excluding energy is 2.4%. However, in October, the main mover in French inflation was tobacco, which surged 6.8%. Without that large increase, the CPI would have risen just 1.8%. In France, this 12-month CPI excluding tobacco has been under 2% since last April. So inflation for non-smokers is quite low.
· As noted in our commentary on the US CPI yesterday, energy prices have continued to decline in November, pointing to another month of modest inflation, not only in the US but, as we see here, among other nations as well.