Inflation down 0.3% for June
Deflation Continues
Yes, the deflation train gains a little momentum with Stats Canada announcing that the Consumer Price Index for June drop by 0.3% year over year.
The decrease was due primarily to a 12-month decline of 19.0% in prices for energy products, particularly gasoline. Excluding energy, the CPI rose 2.1% in June.
So energy prices are still driving down inflation, however, Food is still running at 5.5% inflation year over year (but that is down from 6.4% last month).
A more interesting point mentioned later is:
The Bank of Canada’s core index advanced 1.9% over the 12 months to June, following a 2.0% rise in May.
That puts things higher into the acceptable range for the Bank of Canada, are they thinking of raising interest rates soon?
CPI for June still dropping
The Big Table
| Relative importance2 | June 2008 | June 2009 | May 2008 to May 2009 | June 2008 to June 2009 | |
|---|---|---|---|---|---|
| Unadjusted | % change | ||||
| All-items | 100.003 | 115.4 | 115.1 | 0.1 | -0.3 |
| Food | 17.04 | 115.8 | 122.2 | 6.4 | 5.5 |
| Shelter | 26.62 | 122.3 | 121.3 | -0.2 | -0.8 |
| Household operations and furnishings | 11.10 | 104.3 | 107.3 | 3.2 | 2.9 |
| Clothing and footwear | 5.36 | 92.5 | 91.3 | 1.0 | -1.3 |
| Transportation | 19.88 | 125.8 | 116.1 | -8.2 | -7.7 |
| Health and personal care | 4.73 | 108.7 | 112.8 | 3.2 | 3.8 |
| Recreation, education and reading | 12.20 | 102.9 | 103.8 | 0.9 | 0.9 |
| Alcoholic beverages and tobacco products | 3.07 | 127.7 | 131.6 | 3.0 | 3.1 |
| All-items (1992=100) | 137.3 | 137.0 | 0.1 | -0.2 | |
| Special aggregates | |||||
| Goods | 48.78 | 111.6 | 108.6 | -2.1 | -2.7 |
| Services | 51.22 | 119.1 | 121.5 | 2.2 | 2.0 |
| All-items excluding food and energy | 73.57 | 110.3 | 111.7 | 1.3 | 1.3 |
| Energy | 9.38 | 165.3 | 133.9 | -18.3 | -19.0 |
| Core CPI4 | 82.71 | 111.6 | 113.7 | 2.0 | 1.9 |
Quick Random Thoughts
This week the National Capital Financial Bloggers met and had some very invigorating discussions about a bunch of interesting topics (not all financial related), however the Flu Pandemic even touches these simple events with one member staying home with sick kids. Some of these financial mavens mentioned some interesting topics this week including:
- Michael James wrote about his Cheap Cell Phone, however his example is rather pedagogical since he is not an atypical phone user.
- The Money Grubbing Lawyer took a different plan and says, “I’ve been Cellphone Free for 7 Months“, this is another way to save money on cell phones!
- Preet at WhereDoesAllMyMoneyGo muses about the $10,000 subsidy the Ontarion Gov’t Announced for Electric Cars.
- The Canadian Capitalist asks How Does Pixar do it? Lots of computers and even more marketing, as usual.
- Canadian Financial DIY reviewed the book Inside The Mind of the Turtles and is giving away a copy.
- Larry MacDonald points out an excellent way Not To Pick A Financial Advisor.
Have a stupendous weekend.
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July 17th, 2009 at 10:08 AM
Just marketing doesn’t explain the success of Pixar movies. There is some other secret sauce (or combination of sauces) to their success.
July 17th, 2009 at 2:28 PM
Thanks for the link. Have a great(and flu pandemic-free) weekend.
July 17th, 2009 at 2:38 PM
Secret Sauce? Sounds like a Big Mac, I think they have some good technology, but have figured out how to create cache the same way that was done with the iPod
July 19th, 2009 at 8:56 PM
Some say it just marketing but i this it is a very well thorghtout plan buy some high ranking people