Our friends at Statistics Canada released the April CPI numbers on Friday (just before the long weekend). While it isn’t much different from March’s numbers, it still reflects an upward trend (only 0.1% to a year-over-year rate of 2.0%).
Surprisingly, the good news is that Energy is actually slowing down (in fact, Natural Gas prices are falling drastically); witness:
Consumer prices rose 2.0% in the 12 months to April, led by increases in transportation costs. This increase followed a 1.9% rise in March.
Energy prices increased 1.1% in the 12 months to April, following a 5.1% rise in March. The slower increase in April was largely attributable to smaller price gains for gasoline and electricity, as well as price declines for natural gas (-13.9%).
NOW I choose to replace my natural gas clothes dryer with an electric one?!?! Oh well, another not-so-great choice on my part, but not to worry.
While the following graphic seems to imply that inflation is slowing, that can be deceptive as well, given that energy costs and Gasoline are all over the place these days.
What do I mean by that odd comment? Have a look at the following Gasoline Index Graphic to see how that price has been changing; you might get a better understanding of my comments:
It has been a lot more expensive to travel lately; this graph suggests it is not just my opinion.
Bank of Canada’s core index
The Bank of Canada’s core index rose 2.1% in the 12 months to April, led by price increases for the purchase of passenger vehicles. This increase followed a 1.9% gain in the core index in March.
On a monthly basis, the seasonally adjusted core index increased 0.4% in April, after rising 0.1% the previous month.
Not very high, but not low either, kind of in the “we are ok with that rate for now” range for the central bank.
The Big Table
Where were the biggest jumps? Have a look at the big table and see!
Consumer Price Index and major components, Canada Not seasonally adjusted
| Relative import1 | April 2011 | March 2012 | April 2012 | March to April 2012 |
April 2011 to April 2012 |
|
|---|---|---|---|---|---|---|
| % | (2002=100) | % change | ||||
| All-items Consumer Price Index (CPI) | 100.002 | 119.8 | 121.7 | 122.2 | 0.4 | 2.0 |
| Food | 15.99 | 126.9 | 130.0 | 130.1 | 0.1 | 2.5 |
| Shelter | 27.49 | 125.2 | 126.6 | 126.6 | 0.0 | 1.1 |
| Household operations, furnishings and equipment | 11.55 | 109.8 | 112.7 | 112.6 | -0.1 | 2.6 |
| Clothing and footwear | 5.31 | 93.1 | 94.8 | 95.3 | 0.5 | 2.4 |
| Transportation | 20.60 | 127.2 | 129.5 | 131.3 | 1.4 | 3.2 |
| Health and personal care | 4.95 | 117.3 | 118.3 | 118.9 | 0.5 | 1.4 |
| Recreation, education and reading | 11.20 | 105.1 | 104.9 | 105.4 | 0.5 | 0.3 |
| Alcoholic beverages and tobacco products | 2.91 | 135.0 | 137.5 | 137.7 | 0.1 | 2.0 |
| Special aggregates | ||||||
| Core CPI3 | 82.15 | 117.2 | 119.2 | 119.7 | 0.4 | 2.1 |
| All-items CPI excluding energy | 89.92 | 116.7 | 118.7 | 119.1 | 0.3 | 2.1 |
| Energy4 | 10.08 | 159.2 | 159.5 | 161.0 | 0.9 | 1.1 |
| Gasoline | 5.80 | 186.8 | 187.0 | 192.9 | 3.2 | 3.3 |
| All-items CPI excluding food and energy | 73.93 | 114.4 | 116.1 | 116.6 | 0.4 | 1.9 |
| Goods | 47.80 | 113.7 | 114.8 | 115.3 | 0.4 | 1.4 |
| Services | 52.20 | 125.9 | 128.6 | 129.1 | 0.4 | 2.5 |
Inflation for 2012 Stories
- Canada Inflation Steady at 1.2% in October 2012: CPI and Core Index Breakdown . Canada’s inflation stayed steady at 1.2% in October 2012. Energy price moderation helped ease the CPI, while food and shelter costs rose slightly.
- Inflation Remains Steady for October 2012 in Canada . October 2012 inflation numbers: CPI remains at 1.2%. Is this good for consumers and the economy? Understand how inflation affects prices and the overall economy.
- Consumer prices rose 1.2% in the 12 months to September 2012, matching the increase in August 2012. Higher energy prices, particularly for gasoline and electricity, led the advance in the Consumer Price Index (CPI) for September. This was tempered by lower year-over-year price increases for the purchase of passenger vehicles and for food purchased from stores.
- Slowing Inflation some More for August 2012 in Canada. Canada’s inflation slowed to 1.2% in August 2012, with modest price increases for gas, food, and shelter. Core inflation held at 1.6%, offering relief to consumers.
- Inflation Lower in July in Canada 2012 . Canada’s inflation in July 2012 dropped to 1.3%, driven by lower gas and clothing prices, while food costs continued to rise. A look back at what drove CPI shifts.
- CPI Rate Up a Little for June 2012 in Canada. Canada’s CPI rose 1.5% in June 2012, driven by higher vehicle and electricity prices. Core inflation reached 2.0%, nearing the Bank of Canada’s rate-hike threshold.
- CPI Dropped in May 2012, Wow! Yes, for once the prices dropped. Gas prices were the main reason for the drop in price increases. Keep that in mind: prices were still going up, just not that fast.
- April’s CPI Child is Still Inflating (in Canada). Energy prices increased 1.1% in the 12 months to April 2012, following a 5.1% rise in March. The slower increase in April 2012 was largely due to smaller price gains in gasoline and electricity, as well as price declines in natural gas (-13.9%).
- CPI Sneaking Back up for January 2009. Food prices rose 4.2% on a year-over-year basis in January following a 4.4% increase in December. In January, consumers paid 4.9% more for food purchased from stores and 2.8% more for food purchased from restaurants compared with January 2011.
