Shelter costs rise 2% as cost of living increases

The cost of living increased by 2% in December, rising from 1.7% in November.

Statistics Canada reported that the year-over-year rise in the Consumer Price Index was 3.5% with shelter costs up 2.2% in this period (although unchanged from November), the largest increase.

The annual increase saw alcoholic beverages and tobacco products rise the most (4.4%) followed by food (2.9%) while gasoline prices saw the only decrease, falling 8.6%.

Natural gas products also declined year-over-year (-4.1%) while air transportation (21.7%) and telephone services (6.1%) cost households more.

Consumers also saw a rise in car insurance premiums of more than 5%.

Among the provinces, British Columbia (+3.0%) posted the largest year-over-year increase in the CPI in December as a temporary pipeline closure pushed gasoline prices up 1.7%.

Prices were up more year-over-year in seven provinces in December compared to November.

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