Gas price hikes are now starting to sift through the system, and the price hikes are starting to show their affects on Inflation.
To quote our friends at Stats Canada:
Gasoline prices increased 26.9% between June 2007 and June 2008, significantly higher than the 15.0% advance posted in May. June’s increase was the largest since the 34.7% gain reported for September 2005, when hurricanes Katrina and Rita disrupted the oil market.June’s increase reflected both recent increases in pump prices, as well as the fact that gasoline prices had been on the decline in June 2007.The Bank of Canada’s core index, which is used to monitor the inflation control target, rose 1.5% in June 2008 compared with the same month of the previous year, the same rate of increase posted in May.On a month-to-month basis, the seasonally-adjusted all-items index rose 0.8% between May and June 2008, while the seasonally-adjusted core index increased 0.3%. The seasonally-adjusted all-items index increased 0.7% and the core index edged up 0.1% between April and May
So Core prices aren’t actually increasing as fast as Gasoline (27% year over year, wow, now that is a jump), so that is kind of cool, but the fact that Inflation now stands at 3.1% year over year, may mean some changes in Fiscal Policy down at the Bank of Canada too.
| Consumer Price Index and major components | ||||||
|---|---|---|---|---|---|---|
| (2002=100) | ||||||
| Relative importance1 | June 2008 | May 2008 | June 2007 | May to June 2008 | June 2007 to June 2008 | |
| Unadjusted | ||||||
| % change | ||||||
| All-items | 100.002 | 115.4 | 114.6 | 111.9 | 0.7 | 3.1 |
| Food | 17.04 | 115.8 | 114.6 | 112.6 | 1.0 | 2.8 |
| Shelter | 26.62 | 122.3 | 121.6 | 116.8 | 0.6 | 4.7 |
| Household operations and furnishings | 11.10 | 104.3 | 104.3 | 103.0 | 0.0 | 1.3 |
| Clothing and footwear | 5.36 | 92.5 | 93.0 | 93.1 | -0.5 | -0.6 |
| Transportation | 19.88 | 125.8 | 123.6 | 119.2 | 1.8 | 5.5 |
| Health and personal care | 4.73 | 108.7 | 108.6 | 107.9 | 0.1 | 0.7 |
| Recreation, education and reading | 12.20 | 102.9 | 102.9 | 102.5 | 0.0 | 0.4 |
| Alcoholic beverages and tobacco products | 3.07 | 127.7 | 127.4 | 125.7 | 0.2 | 1.6 |
| All-items (1992=100) | 137.3 | 136.4 | 133.2 | 0.7 | 3.1 | |
| Special aggregates | ||||||
| Goods | 48.78 | 111.6 | 110.4 | 108.9 | 1.1 | 2.5 |
| Services | 51.22 | 119.1 | 118.7 | 114.8 | 0.3 | 3.7 |
| All-items excluding food and energy | 73.57 | 110.3 | 110.3 | 109.0 | 0.0 | 1.2 |
| Energy | 9.38 | 165.3 | 158.4 | 140.1 | 4.4 | 18.0 |
| Core CPI | 82.71 | 111.6 | 111.5 | 109.9 | 0.1 | 1.5 |
