CPI for October 2007 at 2.4%

CPI for October at 2.4%

Gas, mortgage interest and home repair and replacement costs were the major reasons for the price increase. If gas had stayed steady, the real inflation would have been 1.9% for the same period (year over year), but thanks to continually soaring gas prices, Inflation is running at 2.4% year over year.

Will this cause a lowering of interest rates? With the rate remaining within the range the Bank of Canada wants, it will not prompt a rate increase; however, with the swooning Loonie, that interest rate drop might not happen either.

Sin areas continue to see healthy price increases as well (e.g., smoking and alcohol), but Energy is easily the biggest jump in the Stats Can “basket of goods” they use to calculate the Consumer Price Index.

Consumer Price Index and major components
(2002=100)
	Relative importance	October 2007	September 2007	October 2006	September to October 2007	October 2006 to October 2007
		Unadjusted
					% change
All-items	100.00	111.6	111.9	109.0	-0.3	2.4
Food	17.04	110.7	110.9	109.2	-0.2	1.4
Shelter	26.62	118.7	117.8	114.1	0.8	4.0
Household operations and furnishings	11.10	103.4	103.7	102.2	-0.3	1.2
Clothing and footwear	5.36	97.1	97.4	97.7	-0.3	-0.6
Transportation	19.88	115.2	116.9	111.7	-1.5	3.1
Health and personal care	4.73	107.5	107.6	106.1	-0.1	1.3
Recreation, education and reading	12.20	102.7	103.4	100.9	-0.7	1.8
Alcoholic beverages and tobacco products	3.07	126.3	126.6	122.2	-0.2	3.4
All-items (1992=100)		132.9	133.2	129.7	-0.2	2.5
Special aggregates
Goods	48.78	107.1	107.8	105.6	-0.6	1.4
Services	51.22	116.1	115.9	112.2	0.2	3.5
All-items excluding food and energy	73.57	109.6	109.7	107.5	-0.1	2.0
Energy	9.38	134.5	136.6	123.8	-1.5	8.6
Core CPI	82.71	110.3	110.5	108.4	-0.2	1.8

Tomorrow

• Back to the quarterly personal finance status report, how to do it

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