Stats Canada announced on Friday their monthly CPI report for June 2016, with the following two points:
- The Consumer Price Index (CPI) rose 1.5% in the 12 months to June, matching the gain in May.
- Excluding gasoline, the CPI was up 1.9% year over year in June, matching the increase in May.
This cursory overview suggests things are as usual in terms of inflation, however, if you read the detailed June Report, (about the Inflation Rate in Canada) you see a few more telling truths (to turn your financial stomach).
I like this part of the detailed report where we find out what major parts of the categories are contributing to higher prices, note Electricity giving us a big zap.
Main upward contributors:
- Purchase of passenger vehicles (+5.6%)
- Electricity (+6.9%)
- Homeowner’s replacement cost (+3.5%)
- Food purchased from restaurants (+2.6%)
- Air transportation (+5.1%)
Main downward contributors:
- Gasoline (-8.5%)
- Natural gas (-12.5%)
- Mortgage interest cost (-1.3%)
- Fuel oil (-13.2%)
- Dairy products (-2.1%)
As usual we see that Fossil Fuels are big downward contributors (although now in Ontario, we will have a Carbon Tax, which will then have the HST on top of it, so that might change here).
Bank of Canada’s core index:
The Bank of Canada’s core index increased 2.1% in the 12 months to June, matching the rise in May.
The Bank of Canada has been saying that inflation is “under control” (for now), but my guess is the fragility of the world economy (and Canadian economy) will continue to keep interest rates lower (for now).
Reports from the Past While.
If you want to have a walk down memory lane about how prices have gone up, here you go.
- Expensive Food and Shelter in April in Canada
- Good Food Still Is Not Cheap in Canada (Inflation for March)
- Food Prices Continue to Rise for February
- Veggies up 18.2 pct in Canada
- Food Prices up 4.1% For 2015 in Canada
- Gas Prices Drive Down Inflation in December to 1.5%
- Lower Prices in January in Canada, Pull the Other Leg
- Expensive Food in Canada in March
- Prices up 0.8% in April or More Fun with Numbers
- Inflation at 0.9% for May (maybe)