Stats Canada published their May 2009 numbers and they were 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|
Inflation in 2009
- Inflation Edges Up in December 2009 for the first time in a while
- How do you spell INFLATION? In November, evidently, it looked like it might start again
- Consumer Price Index is Trending Up Again in October of 2009
- CPI: How Many Negatives Make it Deflation? a good question for September 2009
- CPI Down Again (kind of) for August of 2009. Is that really deflation?
- Deflation again! CPI Down for July (sort of) really deflation? Not really.
- Inflation down 0.3% for June most of this in June 2009 is caused by gasoline pricing silliness.
- Consumer Price Index for May 2009: Nudges Up but overall it keeps looking like not much
- CPI For April 2009 at 0.4% Wow , calm down big fella it is not that good news
- Consumer Price Index Down a Little for March 2009 which is a good thing, don’t you think?
- Inflation Jumps for February 2009, did it really?