The Consumer Price Index for the period ending September 2017 is 1.6% (year over year). The Bank of Canada’s goal is to keep the inflation rate under 2.0%. The Bank’s own measurements have inflation running at either 1.5%, or 1.8% depending on which definition you choose. Both are below 2.0% as well.
Let’s slice the onion and see where the CPI upswing came from. The Year over year the high/lowlights are:
Main upward contributors:
- Gasoline (+14.1%)
- Homeowners’ replacement cost (+4.0%)
- Food purchased from restaurants (+2.7%)
- Travel tours (+7.3%)
- Air transportation (+6.4%)
Main downward contributors:
- Electricity (-8.6%)
- Women’s clothing (-4.6%)
- Telephone services (-3.1%)
- Furniture (-3.3%)
- Men’s clothing (-2.7%)
Given Gasoline is fluctuating again, what does the CPI look like without it? Have a look:
Homeowners’ replacement cost is another add-on to home ownership to keep in mind as well. The drop in Electricity was expected with Ontario’s rebate program, but what will happen when the program ends? It is a rebate, not a price cut.
By overall category is also quite interesting:
2017 Inflation Discussion
Reports on inflation in 2017 so far.