Well kind of, I guess, the year over year rate for January 2007-08 is 2.2% (adjusted), which is lower than the previous month’s 2.4% rate, which sounds good at first blush.
The following quote made my left eyebrow go up (my Mr. Spock, “Fascinating” look):
For the fifth straight month, growth in the all-items index was due mainly to the 12-month rise in gasoline prices and mortgage interest cost. The upward pressure on the all-items index of these two components was mitigated, to some extent, by the one-percentage-point reduction in the goods and services tax (GST) that took effect in January, and by the reduction in motor vehicle prices.
But interest rates have dropped, and gas prices are stable at about $1.00 a liter (here in Ottawa at least). Does this mean next month’s rates are going to be lower? I don’t think so, because shouldn’t this higher price of energy and gas pass through the system and be reflected in prices of Food, Clothing, and anything else that is shipped over long distances?
The Core Index actually dropped by 0.2% from December to January? This is confusing as heck to me at times, and I really wish someone would do a documentary that would explain the thing in terms most Canadians could understand.
Consumer Price Index Table
You'll need to go to the Stats Canada web page for that one, for some reason I can't import the table, so link here Stats Canada Inflation Table.
Consumer Price Index 2008
- Inflation was lower in January 2008: some better news to start the New Year?
- February 2008 Inflation was at 1.8%
- March 2008 Inflation dropped to 1.4%
- April 2008 CPI jumped to 1.8%, uh oh
- May 2008 and Inflation is at 2.2%? Ouch!
- June 2008 Inflation Jumped to 3.2% thanks to Gasoline!
- July 2008 CPI at 3.4%? Holy Moly!
- Inflation at 3.5% for August 2008 : Learn about the Consumer Price Index (CPI) data for August 2008. Gain insights into inflation rates and economic indicators.
- September 2008 saw CPI at 3.4% down a very slight amount.
- CPI drops to 2.6% in October 2008: CPI for that month seems to be getting better.
- Consumer Price Index at 1.2% to end 2008. Analyzing the December 2008 Consumer Price Index: Dive into the major factors affecting the CPI, including plummeting gas prices and deflation.
I can’t agree with you more on the documentary, I have no clue what this really means either. Are they basically saying, inflation would be way off target (3.2%) had the government not cut the GST? That’s what it looks like to me.