Special Update: CPI Drops a Point to 2.6
Forgot that CPI numbers came out today, so we get a special update, and some very good news as well with the CPI dropping by almost a full point to 2.6%, mostly on the strength of the plummeting price of gasoline.
Although the growth in gasoline prices eased in the 12 months to October, they were still the most significant upward contributor to the overall growth in the Consumer Price Index (CPI). Prices at the pump increased 13.3%, compared with a 12-month change of 26.5% in September. On a monthly basis, gasoline prices fell 13.4% from September to October 2008.
Even with gas prices dropping it still was the largest price increase, which means next month’s numbers should be even more interesting, because gas prices in Ottawa right now are 70 cents a liter.
With inflation levels dropping will this mean even further interest rate drops by the Bank of Canada? Can gasoline prices stay this low? These are the two questions to keep in mind with this data.
Inflation Data Table
| Consumer Price Index and major components | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|
| (2002=100) | |||||||||||
| Relative importance | October 2007 | October 2008 | September 2007 to September 2008 | October 2007 to October 2008 | |||||||
| Unadjusted | % change | ||||||||||
| All-items | 100.00 | 111.6 | 114.5 | 3.4 | 2.6 | ||||||
| Food | 17.04 | 110.7 | 117.4 | 5.6 | 6.1 | ||||||
| Shelter | 26.62 | 118.7 | 123.2 | 4.5 | 3.8 | ||||||
| Household operations and furnishings | 11.10 | 103.4 | 105.2 | 1.8 | 1.7 | ||||||
| Clothing and footwear | 5.36 | 97.1 | 94.4 | -1.3 | -2.8 | ||||||
| Transportation | 19.88 | 115.2 | 117.0 | 4.7 | 1.6 | ||||||
| Health and personal care | 4.73 | 107.5 | 109.2 | 1.7 | 1.6 | ||||||
| Recreation, education and reading | 12.20 | 102.7 | 103.0 | 0.5 | 0.3 | ||||||
| Alcoholic beverages and tobacco products | 3.07 | 126.3 | 128.0 | 1.1 | 1.3 | ||||||
| All-items (1992=100) | 132.9 | 136.3 | 3.4 | 2.6 | |||||||
| Special aggregates | |||||||||||
| Goods | 48.78 | 107.1 | 108.9 | 3.4 | 1.7 | ||||||
| Services | 51.22 | 116.1 | 120.0 | 3.4 | 3.4 | ||||||
| All-items excluding food and energy | 73.57 | 109.6 | 110.6 | 1.0 | 0.9 | ||||||
| Energy | 9.38 | 134.5 | 147.5 | 18.2 | 9.7 | ||||||
| Core CPI | 82.71 | 110.3 | 112.2 | 1.7 | 1.7 | ||||||
|
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Twitter Correction
My twitter link should be http://twitter.com/bigcajunman which I got wrong on my previous post, sorry guys.
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