Our friends at Stats Canada published their monthly Consumer Price Index (for March 2013) Report, and with Gasoline prices moderating, we are back to inflation of 1.0% for the year ending in March 2013.
Our friends at Stats Canada said:
The slower increase in the CPI was mainly the result of gasoline prices, which fell 0.3% on a year-over-year basis in March, after rising 3.9% in February. Provincially, gasoline prices declined year over year in seven provinces.
Never ceases to amaze me that gasoline prices are so random across Canada.
A nasty spike in Fresh Fruit ( 8.7% up) and Fresh Vegetables ( 7.2% up) too, which suggests we should all keep eating junk food ? (NO!)
As we can see the increase in the CPI over the past little while:
Bank of Canada’s core index
Remember that the Bank of Canada measures inflation is just a little bit different way, however, the good news is, it continues to be low (so one less reason to raise bank interest rates too):
The Bank of Canada’s core index rose 1.4% in the 12 months to March, matching the increase in February.
On a monthly basis, the seasonally adjusted core index increased 0.2% in March, after increasing 0.4% in February.
The Big Table
What are the big tables saying where are money is worse less? Just have a look at this one:
Consumer Price Index and major components, Canada – Not seasonally adjusted
| Relative importance1 | March 2012 | February 2013 | March 2013 | February to March 2013 | March 2012 to March 2013 | |
|---|---|---|---|---|---|---|
| % | (2002=100) | % change | ||||
| All-items Consumer Price Index (CPI) | 100.002 | 121.7 | 122.7 | 122.9 | 0.2 | 1.0 |
| Food | 16.60 | 130.0 | 132.9 | 132.4 | -0.4 | 1.8 |
| Shelter | 26.26 | 126.6 | 127.9 | 128.0 | 0.1 | 1.1 |
| Household operations, furnishings and equipment | 12.66 | 112.7 | 114.3 | 114.7 | 0.3 | 1.8 |
| Clothing and footwear | 5.82 | 94.8 | 91.4 | 95.3 | 4.3 | 0.5 |
| Transportation | 19.98 | 129.5 | 130.3 | 129.5 | -0.6 | 0.0 |
| Health and personal care | 4.93 | 118.3 | 118.6 | 118.3 | -0.3 | 0.0 |
| Recreation, education and reading | 10.96 | 104.9 | 104.7 | 105.2 | 0.5 | 0.3 |
| Alcoholic beverages and tobacco products | 2.79 | 137.5 | 139.4 | 139.8 | 0.3 | 1.7 |
| Special aggregates | ||||||
| Core CPI3 | 84.91 | 119.2 | 120.6 | 120.9 | 0.2 | 1.4 |
| All-items CPI excluding energy | 91.44 | 118.7 | 119.7 | 120.0 | 0.3 | 1.1 |
| Energy4 | 8.56 | 159.5 | 160.1 | 159.9 | -0.1 | 0.3 |
| Gasoline | 4.62 | 187.0 | 186.1 | 186.5 | 0.2 | -0.3 |
| All-items CPI excluding food and energy | 74.85 | 116.1 | 116.9 | 117.2 | 0.3 | 0.9 |
| Goods | 48.18 | 114.8 | 115.2 | 115.4 | 0.2 | 0.5 |
| Services | 51.82 | 128.6 | 130.1 | 130.3 | 0.2 | 1.3 |
PEI, NS, NB, NL all have regulated gas prices. QC has a minimum price only.
Personally I don’t think regulating prices is a good idea.
>>>>Never ceases to amaze me that gasoline prices are so random across Canada.
They seem pretty consistent regionally, if I drive around town they’re almost always exactly the same at ever station. But there must be a dividing line near us, because if we drive 15 minutes to the city east of us, gas will be 5-10cents a litre more than if we drive to the city 15 minutes to the west of us. I don’t recall every seeing that much of a price difference in such close proximity. We just remember to drive west to fill up :).
And I still think gasoline prices are fixed and should be investigated. Remember when prices used to go up before long weekends and then there was a public outcry? Response from the industry was that it was pure coincidence. But prices haven’t been spiked before long weekends in the last few years.