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 advancedÂ 1.9% over theÂ 12Â months to June, following aÂ 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 importance2||June 2008||June 2009||May 2008 to May 2009||June 2008 to June 2009|
|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|
|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 excluding food and energy||73.57||110.3||111.7||1.3||1.3|
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.
- 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.
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?