Stats Canada published on Friday the June 2011 Consumer Price Index numbers (for Canada), and they were better than the previous month, but still kind of high (if you use the Bank of Canada’s thresholds).
The year over year rate for June is 3.1% (about 0.6% lower than the year over year for May), which is better, but still not great.
The usual culprits were at the root of the increase, unfortunately the “domino effect” of energy prices is now finding it’s way into our food expenses as well:
Prices for food purchased from stores rose 4.8% in the 12 months to June after increasing 4.2% in May.
Energy prices advanced 15.7% during the 12 months to June, following a 16.6% increase in May. On a year-over-year basis, gasoline prices rose 28.5%, slightly less than the 29.5% gain in May. Prices for fuel oil and electricity also rose, while natural gas prices fell 4.6%.
Gas prices are just off the hook if we use the vernacular of the younger folks.
Without food and energy the price index really only went up 1.4%, but then again, who cares? Energy and food are the two killer expenses for most (if not all) of us, and excluding them is like saying if you exclude water and air pollution, things aren’t too bad on the Earth.
For the head scratching part of our data, dig the following statement about the Bank of Canada core index:
The Bank of Canada’s core index advanced 1.3% in the 12 months to June, following a 1.8% gain in May. The slower increase in June was mostly attributable to the decline in prices for the purchase of passenger vehicles and traveller accommodation.
What the hell are these guys measuring?!?! Well as long as it stays low on this scale, I guess interest rates won’t shoot up too fast (or too quickly), but I could be wrong on that one too.
The Really Big Table
What did each part of the index contribute to this increase? Have a look at this helpful table from Stats Canada and you can see the big culprits. Look for the BOLD RED numbers to help you out.
Consumer Price Index and major components, Canada – Not seasonally adjusted
| Relative importance¹ | June 2010 | May 2011 | June 2011 | May to June 2011 |
June 2010 to June 2011 |
|
|---|---|---|---|---|---|---|
| % | (2002=100) | % change | ||||
| All-items CPI | 100.00² | 116.2 | 120.6 | 119.8 | -0.7 | 3.1 |
| Food | 15.99 | 123.0 | 127.7 | 128.3 | 0.5 | 4.3 |
| Shelter | 27.49 | 123.3 | 125.2 | 125.4 | 0.2 | 1.7 |
| Household operations, furnishings and equipment | 11.55 | 108.6 | 110.4 | 110.7 | 0.3 | 1.9 |
| Clothing and footwear | 5.31 | 89.7 | 93.7 | 90.4 | -3.5 | 0.8 |
| Transportation | 20.60 | 117.3 | 128.9 | 125.5 | -2.6 | 7.0 |
| Health and personal care | 4.95 | 114.7 | 117.2 | 116.9 | -0.3 | 1.9 |
| Recreation, education and reading | 11.20 | 104.2 | 106.1 | 106.0 | -0.1 | 1.7 |
| Alcoholic beverages and tobacco products | 2.91 | 132.2 | 135.7 | 135.6 | -0.1 | 2.6 |
| Special aggregates | ||||||
| Core CPI³ | 82.15 | 115.6 | 117.8 | 117.1 | -0.6 | 1.3 |
| All-items CPI excluding energy | 89.92 | 114.6 | 117.3 | 116.8 | -0.4 | 1.9 |
| Energy | 10.08 | 135.7 | 160.2 | 157.0 | -2.0 | 15.7 |
| Gasoline | 5.80 | 142.8 | 190.5 | 183.5 | -3.7 | 28.5 |
| All-items CPI excluding food and energy | 73.93 | 112.7 | 115.0 | 114.3 | -0.6 | 1.4 |
| Goods | 47.80 | 108.7 | 114.4 | 112.8 | -1.4 | 3.8 |
| Services | 52.20 | 123.6 | 126.7 | 126.8 | 0.1 | 2.6 |
Is that due to a decline in the US dollar reducing the cost of US imports?