Canadians Paid Even More For Food in October (4.1%)

in Bank of Canada, Inflation, Stats Canada

Different Government same story for Inflation in Canada in October, as reported by our friends at Stats Canada. With Gasoline prices down 17.1% year over year, the real inflation rate published is 1.0%, for the 12 months, however, the clarification in the report helps understand about food:

Food prices were up 4.1% year over year in October, after increasing 3.5% in September. This acceleration was attributable to higher prices for food purchased from stores, which increased 4.6% year over year in October, after rising 3.9% the previous month. Prices for fresh fruit increased more in the 12 months to October (+13.0%) than in September (+8.5%). In addition, the dairy products index increased year over year in October, following a decrease the previous month. Prices for food purchased from restaurants were up 2.7% year over year.

Sad to see that healthy food is really going up in price these days. As I have said previously, not that many folks eat Gasoline, and now they are eating less healthy food too (especially if they have fixed incomes). With the dollar dropping in value, the pressure on the Price Index is only getting worse.

CPI for past 5 years

Consumer Price Index for Past 5 Years

That graphic might give you hope, but the following sums it all up far too well, just look at how everything is up, but thanks to lower gas prices, inflation seems low.

Inflation by sector

Inflation by sector compared to last month

Bank of Canada’s core index

The Bank of Canada’s core index was up 2.1% which is unchanged from last month, so the Bank of Canada thinks inflation is higher. (according to their Operational Guide )

Operational Guide

Reports from Previous Months in 2015


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