Canadian Personal Finance Blog

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September 20th, 2007

Inflation at 1.7%, Holy Cow!

Weaker Gasoline prices is the reason given, but I am still stymied by the fact that inflation is dropping even with gas prices at $1.00 per liter again.

Now inflation is the measure of how much things have risen in price, not that things are expensive in the first place, so I guess this makes sense, but more expensive fuel should be rippling through prices in the economy, however that does not seem to be happening?

Here is the break down on things for you who love numbers.

Consumer Price Index and major components

(2002=100)
Relative importance1 August 2007 July 2007 August 2006 July to August 2007 August 2006 to August 2007
Unadjusted
% change
All-items 100.002 111.7 112.0 109.8 -0.3 1.7
Food 17.04 111.8 112.3 109.2 -0.4 2.4
Shelter 26.62 117.6 117.0 113.5 0.5 3.6
Household operations and furnishings 11.10 103.5 103.2 101.7 0.3 1.8
Clothing and footwear 5.36 95.4 94.6 95.4 0.8 0.0
Transportation 19.88 116.3 118.5 118.0 -1.9 -1.4
Health and personal care 4.73 107.6 107.5 105.5 0.1 2.0
Recreation, education and reading 12.20 102.9 103.0 101.2 -0.1 1.7
Alcoholic beverages and tobacco products 3.07 126.1 126.0 121.8 0.1 3.5
All-items (1992=100) 132.9 133.3 130.7 -0.3 1.7
Special aggregates
Goods 48.78 107.7 108.6 108.1 -0.8 -0.4
Services 51.22 115.6 115.3 111.4 0.3 3.8
All-items excluding food and energy 73.57 109.2 109.1 106.8 0.1 2.2
Energy 9.38 136.4 139.6 141.7 -2.3 -3.7
Core CPI3 82.71 110.1 110.0 107.7 0.1 2.2
1. 2005 CPI basket weights at April 2007 prices, Canada - Effective May 2007. Detailed weights are available under the Documentation section of survey 2301 (http://www.statcan.ca/english/sdds/index.htm).
2. Figures may not add up to 100% due to rounding.
3. The measure of the core Consumer Price Index (CPI) excludes from the all-items CPI the effect of changes in indirect taxes and eight of the most volatile components identified by the Bank of Canada: fruit, fruit preparations and nuts; vegetables and vegetable preparations; mortgage interest cost; natural gas; fuel oil and other fuel; gasoline; inter-city transportation; and tobacco products and smokers’ supplies. For additional information on the core CPI, please consult the Bank of Canada website (www.bankofcanada.ca/en/inflation/index.htm).
More on this topic (What's this?)
Ask The Expert with Larry Swedroe, January 2009 Issue (Moolanomy, 12/30/08)
The Blow (Up) Fund (World Beta - Engineering Targete..., 10/21/07)
Inflation Rate Reaches 7,635% In Zimababwe (Money Morning, 8/23/07)
Government Ready to Intervene in China’s Inflation Troubles (Money Morning, 8/30/07)
Read more on Inflation at Wikinvest

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