Stats Canada published their May 2009 numbers today and it is up but only 0.1% over the previous twelve months, which is good to see (for those of us who worry about inflation). This means that prices are supposedly only up 1/10 of 1% over the previous twelve months (as close as you can get to ZERO (without being zero)).
The number is a little deceiving since the report does say:
The slowdown in the 12-month Consumer Price Index (CPI) was primarily the result of an 18.3% year-over-year price drop for energy products. Excluding energy, the CPI rose 2.3%.
Thus without the drop in gas and energy prices CPI is actually around 2.3% which sounds more realistic. With the spiking of gas and oil prices for the summer this could make for more interesting numbers in the coming months, unfortunately.
Gas Prices Down (for Now)
The following graph is even more interesting and shows just how volatile gas prices have been for the past little while:
The Big Price Picture
So how did all of this break down? Energy prices down a great deal, however, food prices are UP a large amount as well, so we have two volatile components in the index, whereas most other components are quite calm.
This does not bode well for those on fixed incomes having to deal with higher food prices (as well as those that are living near the poverty line).
As usual I am including the “big table” to show you the components of the CPI and where the biggest jumps are:
|Relative import||May 2008||May 2009||April 2008
to April 2009
to May 2009
|Household operations and furnishings||11.10||104.3||107.6||2.8||3.2|
|Clothing and footwear||5.36||93.0||93.9||0.8||1.0|
|Health and personal care||4.73||108.6||112.1||2.6||3.2|
|Recreation, education and reading||12.20||102.9||103.8||0.8||0.9|
|Alcoholic beverages and tobacco products||3.07||127.4||131.2||2.4||3.0|
|All-items excluding food and energy||73.57||110.3||111.7||1.2||1.3|