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Inflation down 0.3% for June 2009

in Bank of Canada, Inflation, Interest Rates, Random Thoughts, Stats Canada

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?

The Big Table

 Relative importance2June 2008June 2009May 2008 to May 2009June 2008 to June 2009
  Unadjusted% change
All-items100.003115.4115.10.1-0.3
Food17.04115.8122.26.45.5
Shelter26.62122.3121.3-0.2-0.8
Household operations and furnishings11.10104.3107.33.22.9
Clothing and footwear5.3692.591.31.0-1.3
Transportation19.88125.8116.1-8.2-7.7
Health and personal care4.73108.7112.83.23.8
Recreation, education and reading12.20102.9103.80.90.9
Alcoholic beverages and tobacco products3.07127.7131.63.03.1
All-items (1992=100) 137.3137.00.1-0.2
Special aggregates     
Goods48.78111.6108.6-2.1-2.7
Services51.22119.1121.52.22.0
All-items excluding food and energy73.57110.3111.71.31.3
Energy9.38165.3133.9-18.3-19.0
Core CPI482.71111.6113.72.01.9

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:

Have a stupendous weekend.

Inflation in 2009

{ 4 comments }

  • FINACE July 19, 2009, 8:56 PM

    Some say it just marketing but i this it is a very well thorghtout plan buy some high ranking people

    Reply
  • MoneyGrubbingLawyer July 17, 2009, 2:28 PM

    Thanks for the link. Have a great(and flu pandemic-free) weekend.

    Reply
  • Canadian Capitalist July 17, 2009, 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.

    Reply
    • bigcajunman July 17, 2009, 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

      Reply

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