Inflation Edges Up in December 2009

in Bank of Canada, Consumer Advocacy, Inflation, Stats Canada

Stats Canada announced the CPI numbers for December and for all of 2009 and the trend started in November got a little more momentum with the CPI for 2009 being 1.3% (over 12 months), and Gasoline sits front and center again as an issue.

The rise in the all-items Consumer Price Index (CPI) was due primarily to gasoline prices, which exerted upward pressure on the CPI for the second consecutive month. This follows an extended period in which they were the main contributors to year-over-year declines in overall consumer prices.

For the year the big price jumpers were:

  • Energy given we are back at $1 per liter this is no surprise there
  • Transportation given gas prices again, no surprise, although the cost of mass transit is going up a lot too
  • Health and Personal Care this one really worries me, if health care costs keep doubling the average on inflation, we older folks might be in trouble come retirement time
  • Alcoholic Beverages not as high as health care, but you can at least give us a chance to drown our sorrows? C’mon!!!

See the big table for the numbers.

The Big CPI Table

I really like this table because it shows you all the ugly numbers together:

Consumer Price Index and major components, Canada (2002=100)
 Relative importDec
Nov to Dec 2009Dec
2008 to Dec 2009
     % change
Household operations, furnishings and equipment11.10105.5108.5107.5-0.91.9
Clothing and footwear5.3691.395.190.6-4.7-0.8
Health and personal care4.73109.9113.6113.2-0.43.0
Recreation, education and reading12.20101.2103.7102.8-0.91.6
Alcoholic beverages and tobacco products3.07128.7131.3131.2-0.11.9
All-items (1992=100) 134.9137.2136.6-0.41.3
Special aggregates      
All-items excluding food and energy73.57111.0112.2111.7-0.40.6
Core CPI82.71112.6114.7114.3-0.31.5
2005 CPI basket weights at April 2007 prices, Canada, effective May 2007. Detailed weights are available under the Documentation section of survey 2301 (www.statcan.gc.ca/imdb-bmdi/index-eng.htm).
Figures may not add to 100% due to rounding.
The measure of Core Consumer Price Index (CPI) excludes from the all-items CPI the effect of changes in indirect taxes and eight of the most volatile components identified by the Bank of Canada: fruit, fruit preparations and nuts; vegetables and vegetable preparations; mortgage interest cost; natural gas; fuel oil and other fuel; gasoline; inter-city transportation; and tobacco products and smokers’ supplies. For additional information on Core CPI, consult the Bank of Canada website (www.bankofcanada.ca/en/inflation/index.htm).

Inflation in 2009


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