2025-12-15 15:12
Inflation in November driven by food prices Core inflation drops below 3% for first time since March Annual drop in gasoline prices continues to cap CPI OTTAWA, Dec 15 (Reuters) - Canada's annual inflation rate was 2.2% in November, unchanged from the previous month, and driven primarily by food prices rising at their fastest pace in more than two years, Statistics Canada said on Monday. A year-on-year drop in the costs of gasoline and shelter partially offset the rise in food prices, the statistics agency said. Sign up here. It was the first month since March that core measures of inflation, which strip out volatile items like food and gasoline, came in below 3%, the upper end of the Bank of Canada's control range. Analysts polled by Reuters had forecast annual inflation of 2.3%. November's monthly inflation matched analysts' estimates of 0.1%, down from 0.2% in October, StatsCan said. Canada's annual inflation has been subdued since April due to the removal of a carbon levy on the sale of gasoline. This has kept the price of the fuel low on a year-on-year basis. StatsCan's data showed that the price of gasoline was up 1.8% in November when compared with October, but on an annual basis it was 7.8% lower. Without the effect of gasoline, November's CPI was 2.6%. Food prices overall rose by 4.2% on a yearly basis in November, the biggest increase since December 2023, spurred by a 4.7% rise in grocery prices and a 3.3% increase in the cost of food purchased from restaurants, StatsCan said. Adverse weather conditions in growing regions and President Donald Trump's import tariffs are considered to be driving up food prices, StatsCan said. Coffee, in particular, is imported to the United States and then shipped on to Canada. Beef prices in North America are high due to a small cattle herd in North America. But most other components largely cooled from the previous month in signs that prices were not heating up amid tariffs. "Central bankers can take comfort that a stagflationary environment is not emerging," Royce Mendes, Managing Director & Head of Macro Strategy at Desjardins, wrote in a note. The Bank of Canada's preferred measures of core inflation - CPI-median and CPI-trim - had hovered around 3% since April when Trump's tariffs started to take effect. CPI-median, the centermost component of the CPI basket, edged down to 2.8% in November from 3% in the prior month. CPI-trim, which excludes the most extreme price changes, was also at 2.8% last month from 3% in October. The Canadian dollar firmed slightly after the data, trading up 0.07% to 1.3761 to the U.S. dollar, or 72.67 U.S. cents. Yields on Canada's two-year government bonds were down 2.3 basis points at 2.486%. https://www.reuters.com/world/americas/canadas-annual-inflation-november-stays-unchanged-22-2025-12-15/
2025-12-15 13:37
Dec 15 (Reuters) - Canadian factory sales fell by 1.0% in October from September on lower sales in both the chemical and wood products subsectors, Statistics Canada said on Monday. Excluding motor vehicles and parts, manufacturing sales were down 1.1%. Sign up here. Month/month change (%) Oct Sep(rev) Sep(prev) Sales -1.0 +3.6 +3.3 Sales ex-autos -1.1 +3.0 +2.7 Inventories -0.7 +0.1 0.0 Unfilled orders +0.1 -0.3 -1.0 New orders -0.4 +2.0 +2.5 Oct Sep(rev) Sep(prev) Inv/sales ratio 1.70 1.69 1.70 NOTE: All figures are seasonally adjusted. Analysts surveyed by Reuters forecast factory sales to decline 1.1% in October from September. Keywords: CANADA ECONOMY/MANUFACTURING https://www.reuters.com/world/americas/canada-october-factory-sales-down-10-chemicals-wood-2025-12-15/
2025-12-15 13:26
TORONTO, Dec 15 (Reuters) - Canadian housing starts rose 9.4% in November from the previous month, data from the national housing agency showed on Monday. The seasonally adjusted annualized rate of housing starts climbed to 254,058 units from a revised 232,245 units in October, the Canada Mortgage and Housing Corporation (CMHC) said. Economists had expected starts to rise to 250,000. Sign up here. https://www.reuters.com/world/americas/canadian-housing-starts-increase-94-november-2025-12-15/
2025-12-15 12:42
PARIS, Dec 15 (Reuters) - French farmers are protesting against government measures, including the culling of entire cattle herds, aimed at containing an outbreak of lumpy skin disease among livestock in France and other parts of Europe. Here's what you need to know about the disease, which does not affect humans, and why the latest outbreak matters. Sign up here. WHAT IS LUMPY SKIN DISEASE? Lumpy skin disease is a viral infection mainly spread by biting insects, affecting cattle and buffaloes. It causes fever and painful skin lumps, weakens animals and reduces milk output. The disease does not infect humans, either through contact or by consuming meat or dairy products, but it can trigger trade bans and cause heavy financial losses. The disease, widespread in North Africa, appeared in Sardinia and northern Italy in late June, then in France's eastern Savoie region before spreading to the southwestern of the country. It has also been detected in Spain. WHAT'S AT STAKE? If left unchecked, the disease could wipe out 1.5 million cattle in France, or about 10% of the national herd, Agriculture Minister Annie Genevard told daily newspaper le Parisien. It also threatens dairy and beef exports and could pressure prices. Britain banned imports of raw-milk cheese from France but lifted the embargo earlier this month. Canada has restricted some French dairy products, citing the risk of disease spread and its impact on cattle production. HOW IS THE DISEASE CONTROLLED? France has launched a campaign to vaccinate an additional one million cattle in affected regions by December 13, on top of the one million already inoculated. But vaccination comes too late for farms where cases have been detected. French rules require an entire herd to be culled if a single cow is infected. Movement of animals is also banned within and from outbreak zones, making it harder for farmers to send cattle to slaughter. Italy and Spain also cull herds when the disease is detected. HOW ARE FARMERS' PROTESTS LINKED TO THE DISEASE? President Emmanuel Macron's government says culling entire herds is necessary to stop the disease spreading. The main FNSEA farmers' union backs the policy, but smaller unions say killing healthy animals is excessive and destroys livelihoods. Farmers have staged protests in southwestern France, blocking highways with tractors and hay bales and clashing with police. The crisis comes as farmers also complain about what they see as excessive EU red tape and the Mercosur trade deal the EU hopes to finalise with South American nations before year-end. Farmers fear the deal will lead to cheaper imports, undercutting European producers. https://www.reuters.com/business/healthcare-pharmaceuticals/what-is-lumpy-skin-disease-cattle-why-are-french-farmers-angry-2025-12-15/
2025-12-15 12:32
BRASILIA, Dec 15 (Reuters) - Brazil's economy started the fourth quarter on a weaker footing, central bank data showed on Monday, as analysts closely monitor activity indicators to calibrate their bets on when a monetary easing cycle might start. The IBC-Br economic activity index, a proxy for gross domestic product (GDP), fell 0.2% in October from the previous month, undershooting the forecast of 0.1% growth from economists polled by Reuters. Sign up here. Based on central bank estimates for agriculture, industry and services, along with production-related taxes, the index would have contracted 0.3% month on month without support from a 3.1% expansion in the farm sector, the only positive contribution in the period. On a non-seasonally adjusted basis, the index rose 2.5% in the 12 months through October. The central bank last week held its benchmark interest rate at 15% for a fourth consecutive meeting, maintaining a hawkish stance and reiterating the need to keep rates unchanged for a prolonged period to bring inflation back to its 3% target. While policymakers offered no guidance on when rate cuts might begin, economists expect easing to start in the first quarter of next year, with most forecasting an initial move in March, though many see scope for a cut as early as January. https://www.reuters.com/world/americas/brazils-economic-activity-starts-q4-weaker-footing-2025-12-15/
2025-12-15 12:31
LONDON, Dec 15 (Reuters) - The pound held steady on Monday ahead of a string of UK data that could help cement expectations for a Bank of England rate cut later in the week. Markets show traders are almost fully pricing in a rate cut on Thursday, when the BoE meets, and traders expect another cut by the middle of 2026, with a possibility of a second by year-end. Sign up here. Inflation is still running at nearly twice the BoE's 2% target rate, but the economy is slowing. Data last week showed that, on a monthly basis, Britain's gross domestic product was barely changed, or contracted, every month since June. In October, GDP shrank by 0.1% both in the August-October period and during the month alone, against forecasts for a flat reading and a 0.1% rise, respectively, as the economy lost momentum in the run-up to finance minister Rachel Reeves' budget in November. Sterling , which has risen 7% this year against the dollar, was at $1.3382, little changed on the day, while trading slightly weaker against the euro, which held at 87.755 pence . Investors are waiting for the delayed release of the U.S. November non-farm payrolls report on Tuesday to set the tone for the dollar. UK wage growth data is due on Tuesday and consumer price inflation (CPI) on Wednesday. Both will come under close scrutiny from investors. They are unlikely to change expectations for Thursday's BoE meeting, but could prove key in shaping the policy outlook for 2026, analysts said. "At last, even in these sleepy weeks before Christmas, there is still much to discuss," Caxton strategist David Stritch said. "Whilst the delayed U.S. non-farm payroll data releasing tomorrow may have the most worldwide traders glued to their desks, UK CPI, unemployment and the BoE decision will be the most crucial for the sterling 2026 outlook." Data on Monday from property website Rightmove showed asking prices for British homes have fallen by more than is usual for the time of year, in what could be a reflection of increased uncertainty in the property market ahead of last month's budget. https://www.reuters.com/world/uk/sterling-holds-steady-ahead-boe-decision-this-week-2025-12-15/
