Friday Stats Canada published their monthly Consumer Price Index Report (for January) 2016 and it seems that things are starting to appear to be heating up in terms of prices. This actually means that this month gasoline prices did not mask (as well) the continuing rise in the price of food across Canada.
Some important points made in the overview of the main report
- “Inflation rose 2.0% in the 12 months to January, after increasing 1.6% in December“. While this is not overly high, it does put it closer to the point where the Bank of Canada might step in and do something about it (see later on about those numbers).
- “In January, gasoline prices were up on a year-over-year basis for the first time since October 2014; this occurred despite a monthly decline of 6.0%.” Upward pressure from Gasoline prices means the overall index value is not as supercilious as in previous months.
- “Prices rose in seven of the eight major components on a year-over-year basis in January, with the food and transportation indexes contributing the most to the rise in the CPI. The clothing and footwear index was the only major part to decline on a year-over-year basis in January.“
The telling part of the report is that it does show where we are “taking it in the neck” in terms of higher prices with:
Main contributors to the 12-month change in Inflation
Main upward contributors:
- Purchase of passenger vehicles (+4.0%)
- Fresh vegetables (+18.2%)
- Electricity (+6.0%)
- Homeownersâ€™ home and mortgage insurance (+8.8%)
- Fresh fruit (+12.9%)
Main downward contributors:
- Natural gas (-18.6%)
- Telephone services (-2.5%)
- Mortgage interest cost (-1.3%)
- Passenger vehicle insurance premiums (-1.6%)
- Fuel oil (-15.0%)
No real surprise there, with Fresh Fruit and Veggies being much higher in price (year over year). Interesting that Insurance continues to be mentioned here as well.
The overall graphic is illuminating as well:
Drives home the fact that everything is up year over year.
One more fun graphic of inflation with and without gasoline.
That is some interesting variance.
Bank of Canadaâ€™s core index:
The Bank of Canadaâ€™s core index rose 2.0% in the 12 months to January, following a 1.9% increase in December.
So the Bank of Canada and Stats Canada’s numbers are at least closer than normal.
Reports from Previous Months in 2015
If you want to have a walk down memory lane about how prices have been going up, here you go.
- Food Prices up 4.1% For 2015 in Canada
- Gas Prices Drive Down Inflation in December to 1.5%
- Lower Prices in January in Canada, Pull the Other Leg
- Expensive Food in Canada in March
- Prices up 0.8% in April or More Fun with Numbers
- Inflation at 0.9% for May (maybe)
- Gas Dampens CPI for July
- Inflation and Silly Gasoline Tricks Continues in August
- Canadians Paid 3.9% More For Food in September
- Canadians Paid Even More For Food in October (4.1%)
- Food Prices Up 3.4% In November