Stats Canada on Friday published their year-end Consumer Priced Index. These numbers show us what kind of year 2016 was. The most interesting index increase is Canadians paid 4.0% more for Energy in 2016, and Ontarians had a ludicrous price jump for the price of electricity.
Overall the CPI (or inflation) year over year growth ending in December is 1.5%, which is still below the Bank of Canada’s barometer range (starting at 2.0%). This does not mean the B of C won’t raise interest rates, just that inflation won’t be the reason sited.
The Energy index includes Gasoline, Electricity and other essentials, and as mentioned. For Ontarians Energy was particularly noticeable as Electricity is up 11.2% year over year ending in December. Yes, that is a double digit increase, so Inflation in Ontario year over year is actually 2.0%.
Prices by Category
By Category we can see the monthly changes in this graphic:
This does show Energy, and you can see how Energy and Gasoline prices are up big year over year.
|December 2015 to December 2016|
|All-items excluding energy||92.21||125.0||126.6||1.3|
|All-items excluding food and energy||75.80||121.3||123.5||1.8|
From the CPI detailed report we can get a nice set of highlights about what cost more year over year.
Main contributors to the 12-month change in the CPI:
Main upward contributors:
- Gasoline (+5.5%)
- Homeownersâ€™ replacement cost (+4.3%)
- Purchase of passenger vehicles (+2.6%)
- Food purchased from restaurants (+2.3%)
- Electricity (+3.6%)
Main downward contributors:
- Food purchased from stores (-2.8%)
- Childrenâ€™s clothing (-4.5%)
- Video equipment (-5.8%)
- Travel tours (-1.6%)
- Mortgage interest cost (-0.3%)