Canada's annual inflation rate holds steady at 3.1 per cent in November

Statistics Canada says the annual inflation rate was unchanged in November, holding steady at 3.1 per cent. The consumer price index report today shows progress on easing inflation stalled as higher prices for recreation and clothing put upward pressure on headline inflation.

Meanwhile, the pace of grocery price increases continued to slow for a fifth consecutive month. Grocery prices were up 4.7 per cent from a year ago, marking a slowdown from 5.4 per cent in October.

Prices for services were unchanged last month, rising 4.6 per cent year-over-year, as higher prices for travel tours were offset by lower prices for cell phone services.

The Bank of Canada has opted to hold its key interest rate steady at five per cent over the last few months, but has not ruled out further rate hikes if inflation stays stubbornly high