XPost: can.politics, ab.politics, bc.politics   
   From: Panca@nyet.ca   
      
   The vicious cycle of big oil and other big corporations driving up our mortgage   
   and loan rates has been cracked wide open.   
      
   We've been on the 'sucker end' of high inflation - which was always driven by   
   corporations, not the average person overspending.   
   And the government has been playing us like puppets at the whim of inflationary   
   prices driven by those corporations.   
      
   That cycle is over - for as long as the oil industry is on its knees.   
   ________________________________________________________________   
      
   OTTAWA - A big drop in pump prices tapped the brakes on Canadian inflation last   
   month, slowing the annual rate to two per cent as it offset rising costs of   
   other goods.   
      
   Statistics Canada's November reading, released Friday, detected the slowdown   
   amid the global slide in world oil prices.   
      
   The federal agency found prices climbed in every major category of its consumer   
   price index compared to a year earlier except for transportation — in large   
   part due to the sharp fall in gasoline prices.   
      
   As a result, the national inflation rate rang in below economists' expectations   
   of 2.2 per cent following October's reading of 2.4 per cent.   
      
   With gas prices sinking even deeper in December, the chief economist of one   
   major bank predicted an even greater slowdown in next month's headline   
   inflation reading — to below one per cent, perhaps.   
      
   "That's going to be the dominant story next month," BMO's Doug Porter said of   
   the tumbling gas prices.   
      
   Statistics Canada also registered a lower core inflation rate for November,   
   which means the Bank of Canada could hold off a little longer before it   
   increases the trend-setting interest rate.   
      
   Core inflation, which excludes volatile items such as some food products and   
   gasoline, slowed in November to 2.1 per cent after a 2.3 per cent increase in   
   October. A consensus of economists had predicted the reading for core inflation   
   would rise 2.4 per cent.   
      
   That core figure is closely watched by the Bank of Canada, which aims to keep   
   it as close to its ideal two per cent target as possible.   
      
   Porter said BMO might change its official projection of October 2015 for the   
   Bank of Canada's next interest-rate hike.   
      
   "We're very close to pushing that forecast out a couple of months," said   
   Porter, who thinks the lower inflation could give the Bank of Canada freedom to   
   stay put, even if the U.S. Federal Reserve increases its rate next year, as   
   expected.   
      
   "If oil prices stay at these kinds of levels, we're leaning to the view that   
   the Bank of Canada will just stand aside through the year."   
      
   Statistics Canada found gasoline prices in November fell 5.9 per cent compared   
   to a year earlier, while the monthly gasoline price index fell 7.5 per cent —   
   the fifth consecutive monthly decrease.   
      
   Aside from gasoline, some of the major contributors to price decreases were   
   travel tours at 10 per cent, video equipment at 9.3 per cent, digital computing   
   equipment and devices at 4.2 per cent.   
      
   On the other side, the increases in the cost of natural gas by 14.7 per cent,   
   meat by 12.2 per cent and cigarettes by 11.4 per cent were among some of the   
   largest year-over-year price gains last month.   
      
   On a seasonally adjusted month-to-month basis, the agency said prices overall   
   fell 0.2 per cent from November, after rising 0.1 per cent in October.   
      
   Looking across the country, consumer prices for November increased at a slower   
   pace in every province compared to the previous year except for British   
   Columbia, where inflation sped up slightly to 1.2 per cent from 1.1 per cent in   
   October.   
      
   Ontario, meanwhile, registered the highest inflation of any province at 2.4 per   
   cent. Prince Edward Island's inflation rate was the lowest at 0.1 per cent.   
      
   For the November core rate, Statistics Canada's data said lower prices in the   
   categories of clothing and footwear as well as recreation, education and   
   reading pushed the underlying measure downward.   
      
   Porter said it was likely caused, in part, by retail discounts during Canada's   
   growing Black Friday-like sales.   
      
   In the Bank of Canada's latest rate announcement, it acknowledged inflation had   
   climbed faster than it had expected.   
      
   But the announcement, made earlier this month, maintained the inflation   
   increase was due to the "temporary effects" of a lower Canadian dollar and   
   price jumps in certain consumer sectors, such as telecommunications and meat.   
      
   "This month's report gives a lot of support to that view," Porter said.   
      
   On Friday, Statistics Canada also released October's numbers for retail trade,   
   which remained flat at $42.8 billion.   
      
   The agency said the result came from lower sales for motor vehicle and parts   
   dealers as well as gasoline stations, which were offset by higher sales in most   
   of the other areas.   
      
   --- SoupGate-Win32 v1.05   
    * Origin: you cannot sedate... all the things you hate (1:229/2)