Stats Canada published the Consumer Price Index a little earlier this month (this past Thursday), and as I guessed the continued oscillations of Gas prices has caused the January CPI to seem to suggest that prices only rose 1.0% year over year, which of course, is more fun with numbers. Without gas prices included the actual CPI is around 2.5%, and with gas prices going back up 25% this past month, look for a not so happy story in February.
The major increase that impacts everyone is the 4.5% increase in Food prices, to quote Stats Canada:
Food prices advanced 4.6% on a year-over-year basis in January, the largest gain since November 2011. Prices for food purchased from stores were up 5.4% in the 12 months to January, following a 4.2% rise the previous month. Prices for both fresh fruit and fresh vegetables posted higher year-over-year increases in January than in December. Consumers paid 2.8% more for food purchased from restaurants in January compared with the same month in 2014.
Given all the cogitations of fuel prices the price of food has been steadily going up, and making it a lot harder for lower and middle-income Canadians to feed their families.
Bank of Canada’s core index
Let us hope that the Bank of Canada has a more sane view of inflation?
The Bank of Canada’s core index rose 2.2% in the 12 months to January, matching the increase in December.
The seasonally adjusted core index rose 0.2% on a monthly basis in January, matching the gain in December.
Well, it is closer to the real numbers, but I suspect we will continue with our over-stimulated economy for a while longer.
Consumer Price Index, major components and special aggregates
A usual, I will include one of the big tables for you to see just how interesting all the numbers are, and you do the comparison on things.
|Relative import1||January |
|Dec 2014 |
to Jan 2015
|Jan 2014 |
to Jan 2015
|Household operations, furnishings and equipment||13.14||114.7||117.8||118.0||0.2||2.9|
|Clothing and footwear||6.08||89.2||91.1||91.1||0.0||2.1|
|Health and personal care||4.73||118.3||119.6||120.0||0.3||1.4|
|Recreation, education and reading||10.89||104.7||106.1||105.6||-0.5||0.9|
|Alcoholic beverages and tobacco products||2.86||140.9||149.1||149.9||0.5||6.4|
|Bank of Canada’s core index3||85.39||121.3||123.7||124.0||0.2||2.2|
|All-items excluding energy||92.21||120.1||122.5||122.9||0.3||2.3|
|All-items excluding food and energy||75.80||117.3||119.3||119.5||0.2||1.9|
- 2013 Consumer Price Index (CPI) basket weights at December 2014 prices, Canada, effective with the January 2015 CPI.
- Figures may not add up to 100% as a result of rounding.
- 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 index, consult the Bank of Canada’s website.
- The special aggregate “energy” includes: electricity; natural gas; fuel oil and other fuels; gasoline; and fuel, parts and accessories for recreational vehicles.