Originally published in July 2013, this article captures a notable moment in Canadian inflation trends. The data is historical. It highlights recurring patterns such as seasonal fuel price spikes. It also shows CPI shifts and monetary policy implications. This remains a valuable reference for comparing past inflation behavior with current economic conditions.
On Friday Stats Canada published their Consumer Price Index Report for June 2013 and reported:
The Consumer Price Index (CPI) rose 1.2% in the 12 months to June, following a 0.7% increase in May. This 0.5 percentage point gain in the CPI was led by transportation prices, which rose 2.0% on a year-over-year basis in June after falling 0.5% in May.
Gas prices again turn out to be the culprit for the jump in transportation costs (given Gas is $1.34 a litre in Ottawa, it is not surprising).
A disturbingly sharp jump up on the graph unfortunately. Wonder what is causing the gas price jumps? Feel free to add your own theories in the comments area. I blame the summer vacation season. It is an excellent time for Oil Companies to raise prices. However, I am also paranoid.
Bank of Canada’s core index
This month the CPI measurement by the Bank of Canada is actually higher than the “regular CPI” from Stats Canada
The Bank of Canada’s core index rose 1.3% in the 12 months to June, following a 1.1% increase in May.
On a monthly basis, the seasonally adjusted core index increased 0.2% in June, after posting no change in May.
This is still well under the trigger CPI rate that might signal interest rate increases of 2.0% however, we are getting closer.
What Was More Expensive?
I like to include one of the Big Tables from the publication as well, so have a look at what areas you obviously pay more for this month:
Table 3 Consumer Price Index and major components “ Seasonally adjusted1
| April 2013 | May 2013 | June 2013 | April to May 2013 | May to June 2013 | |
|---|---|---|---|---|---|
| (2002=100) | % change | ||||
| All-items Consumer Price Index (CPI) | 122.3 | 122.5 | 122.9 | 0.2 | 0.3 |
| Food | 131.8 | 132.1 | 132.2 | 0.2 | 0.1 |
| Shelter | 128.2 | 128.3 | 128.5 | 0.1 | 0.2 |
| Household operations, furnishings and equipment | 114.2 | 114.0 | 114.2 | -0.2 | 0.2 |
| Clothing and footwear | 92.4 | 92.7 | 92.7 | 0.3 | 0.0 |
| Transportation | 127.2 | 127.5 | 129.5 | 0.2 | 1.6 |
| Health and personal care | 118.2 | 118.1 | 118.2 | -0.1 | 0.1 |
| Recreation, education and reading | 105.6 | 105.8 | 105.9 | 0.2 | 0.1 |
| Alcoholic beverages and tobacco products | 140.1 | 141.1 | 140.9 | 0.7 | -0.1 |
| Special aggregates | |||||
| Core CPI2 | 120.8 | 120.8 | 121.1 | 0.0 | 0.2 |
| All-items CPI excluding food and energy3 | 117.0 | 117.0 | 117.2 | 0.0 | 0.2 |
Inflation 2013
What was Inflation like in 2013?
- Christmas CPI Data Ho Ho Ho
- Low Flying Prices: Inflation at 1.1% for September
- The Price is Right? Consumer Price Index up 1.1% for August in Canada
- CPI Up to 1.2 % in June in Canada 2013
- Inflation at 0.4 % For April in Canada
- Inflation Back to 1.0% for March in Canada
- Inflation Up a Little in February in Canada
- CPI at 0.5% for January in Canada, Wow that is Low!
- Inflation Below 1% to end 2012 in Canada
Enbridge Gas has informed me that my bill will rise by $85 this year.
My property taxes will rise by 3% or 4% next year.
Just got my house insurance bill and it went up about $12.
My wage does not change so I am finding it hard to get ahead.