That is really what the headlines should have read from the Stats Canada Consumer Price Index Report for September 2015, instead, it read the total CPI is 1.0%, thanks to cheaper gasoline. The whole report starts off optimistically with the following statement:
The Consumer Price Index (CPI) rose 1.0% in the 12 months to September, after increasing 1.3% in August.
The smaller year-over-year increase in the CPI in September compared with August was mostly attributable to an 18.8% year-over-year decline in gasoline prices in September, following a 12.6% decrease the previous month.
Reading that you are thinking rainbows, unicorns and how wonderful things are, until you read the following statement:
Consumers paid 3.5% more for food in September compared with the same month a year ago. Prices for food purchased from stores were up 3.9% year over year in September. Prices for fresh vegetables increased more on a year-over-year basis in September (+11.5%) than in August (+7.7%). The meat index rose 4.4% year over year in September, following a 6.3% increase in August. In the 12 months to September, prices for food purchased from restaurants were up 2.7%.
If that doesn’t tighten one of your 5 sphincters, I am not sure what will.
Here is a pretty graph to make you feel better about how much you are spending on food.
While that might make you feel better and convince you that things are just fine, the following graphic is much better at showing that you really are paying a fair amount more for your “stuff” but thanks to gas no one really cares. Oh and if this makes you want to have a drink of a smoke, that costs more too (OK that is me just whining).
Bank of Canada’s core index
At least the Bank of Canada seems to be getting a little more right? Remember if things get above 3% is when they start thinking about an interest rate change (remember, Interest Rates can go up!).
The Bank of Canada’s core index was up 2.1% in the 12 months to September, matching the increase in August.