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CPI Rate Up a Little for June 2012 in Canada

Friday our friends a Stats Canada published the CPI numbers for June 2012, and rates are up a bit more than in May, but still not horrendous.

Surprisingly gasoline was not a direct contributor this time, but electricity did:

Consumer prices rose 1.5% in the 12 months to June, following a 1.2% gain in May. The increase in the Consumer Price Index (CPI) was led by higher prices for the purchase of passenger vehicles and, to a lesser extent, for electricity.

It is interesting that electricity, allegedly the fuel of the future is now having the same issues that gasoline is having?

The cost of electricity rose 5.9% year over year in June, mostly as a result of increases in Ontario, Alberta and British Columbia.

Higher electricity charges? Wonder what happens when the next generation of plug-in electric cars arrive, will folks want to plug them in? There needs to be some kind threshold which electricity cannot cross for electric cars to be a viable option.

The Energy Index as a whole is a bit of a roller coaster as you can see:

Energy Index for the Past Little While

If you look at the seasonally adjusted value, CPI is actually dropping (it dropped 0.3% last month and 0.2% this month), but that really means nothing in my mind, CPI is raw numbers, let’s not wallow about with adjustments!

Adjusted CPI Graph for Last Little While

Bank of Canada Index

The Bank of Canada’s version of the data is again, interesting:

The Bank of Canada’s core index rose 2.0% in the 12 months to June, following a 1.8% gain in May. Price increases for the purchase of passenger vehicles and electricity were main contributors to the year-over-year increase in the core index.

On a monthly basis, the seasonally adjusted core index rose 0.1% in June, after declining 0.1% in May.

So this is actually getting closer to when the Bank might act?

The Big Table

What about all of the data from Stats Canada, you might ask?

Consumer Price Index and major components, Canada – Not seasonally adjusted

Relative import1 June 2011 May 2012 June 2012 May to June 2012 June 2011
to June 2012
% (2002=100) % change
All-items Consumer Price Index (CPI) 100.002 119.8 122.1 121.6 -0.4 1.5
Food 15.99 128.3 130.9 130.9 0.0 2.0
Shelter 27.49 125.4 126.7 127.0 0.2 1.3
Household operations, furnishings and equipment 11.55 110.7 112.8 113.1 0.3 2.2
Clothing and footwear 5.31 90.4 93.4 90.5 -3.1 0.1
Transportation 20.60 125.5 129.9 127.6 -1.8 1.7
Health and personal care 4.95 116.9 118.8 118.9 0.1 1.7
Recreation, education and reading 11.20 106.0 106.7 106.7 0.0 0.7
Alcoholic beverages and tobacco products 2.91 135.6 137.7 137.5 -0.1 1.4
Special aggregates
Core CPI3 82.15 117.1 119.9 119.4 -0.4 2.0
All-items CPI excluding energy 89.92 116.8 119.3 118.8 -0.4 1.7
Energy4 10.08 157.0 157.7 155.7 -1.3 -0.8
Gasoline 5.80 183.5 186.1 180.2 -3.2 -1.8
All-items CPI excluding food and energy 73.93 114.3 116.7 116.2 -0.4 1.7
Goods 47.80 112.8 114.7 113.5 -1.0 0.6
Services 52.20 126.8 129.5 129.6 0.1 2.2
1. 2009 CPI basket weights at April 2011 prices, Canada, effective May 2011. Detailed weights are available under the Documentation section of survey 2301 (
2. Figures may not add to 100% as a result of rounding.
3. The Bank of Canada’s core index excludes eight of the Consumer Price Index’s most volatile components (fruit, fruit preparations and nuts; vegetables and vegetable preparations; mortgage interest cost; natural gas; fuel oil and other fuels; gasoline; inter-city transportation; and tobacco products and smokers’ supplies) as well as the effects of changes in indirect taxes on the remaining components. For additional information on the core CPI, please consult the Bank of Canada website (
4. The special aggregate “Energy” includes: electricity; natural gas; fuel oil and other fuels; gasoline; and fuel, parts and supplies for recreational vehicles.

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