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Inflation down 0.3% for June 2009

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 importance2 June 2008 June 2009 May 2008 to May 2009 June 2008 to June 2009
    Unadjusted % change
All-items 100.003 115.4 115.1 0.1 -0.3
Food 17.04 115.8 122.2 6.4 5.5
Shelter 26.62 122.3 121.3 -0.2 -0.8
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
Transportation 19.88 125.8 116.1 -8.2 -7.7
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 (1992=100)   137.3 137.0 0.1 -0.2
Special aggregates          
Goods 48.78 111.6 108.6 -2.1 -2.7
Services 51.22 119.1 121.5 2.2 2.0
All-items excluding food and energy 73.57 110.3 111.7 1.3 1.3
Energy 9.38 165.3 133.9 -18.3 -19.0
Core CPI4 82.71 111.6 113.7 2.0 1.9

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

Feel Free to Comment

  1. Just marketing doesn’t explain the success of Pixar movies. There is some other secret sauce (or combination of sauces) to their success.

    1. 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

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