Last week our friends at Stats Canada published their monthly Consumer Price Index report which showed that prices continue to look like they are slowly increasing at 1.1% year over year, but again, that is open to interpretation as well.
Stats Canada’s overview was simply:
Higher shelter costs led the rise in the CPI. Year-over-year price increases for food and transportation were also contributing factors. The health and personal care index was the only major component to decline in September compared with the same month a year ago.
So the “housing bubbles” continue to contribute, and the pendulum price swings of Gasoline seem to soften the blow this month (see the large table at the end for a further elaboration on that comment).
The problem with the gasoline pendulum pricing is that it is a pendulum that is not nailed down and it continues to move to a higher price (i.e. the price is never going to drop back to 80 cents a liter (at least not until alternate fuels come seriously into play)), so while sometimes it is way up and sometimes it is way down it still moves higher over time.
Prices continue to go up, there is no escaping this and if your “investments” aren’t growing at least this much you are falling behind (yes I am stating the blindingly obvious yet again, but sometimes the obvious is important to repeat, just like sometimes the obvious is important to repeat).
Bank of Canada’s core index
Remember that the central bank has its own CPI measurement and that is what they use to decide whether to raise interest rates, or make monetary policies more conservative (or restrictive). So far we are safe (again):
The Bank of Canada’s core index rose 1.3% in the 12 months to September, matching the increase in August.
The Big Table
As usual I urge you to go over to the Stats Canada Web Site and look at the data yourself (and don’t just believe bloggers or the Talking heads on TV), the data is quite interesting:
|All-items Consumer Price Index (CPI)|
|Household operations, furnishings and equipment|
|Clothing and footwear|
|Health and personal care|
|Recreation, education and reading|
|Alcoholic beverages and tobacco products|
|All-items CPI excluding food and energy3|
1.A seasonally adjusted series is one from which seasonal movements have been eliminated. Each month, the previous month’s seasonally adjusted index is subject to revision. On an annual basis, the seasonally adjusted values for the last three years are revised with the January data release. Users employing CPI data for indexation purposes are advised to use the unadjusted indexes. For more information on the availability and uses of seasonally adjusted CPI data, please see the Definitions, data sources and methods section of survey 2301.
2.The Bank of Canada’s core index excludes eight of the CPI’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 ).
3.The special aggregate “Energy” includes: electricity; natural gas; fuel oil and other fuels; gasoline; and fuel, parts and supplies for recreational vehicles.