CPI for September is down a little from August 2008

Stats Canada published the Consumer Price Index for September 2008 at 3.4%, a 0.1% drop (in increase) from August’s numbers.

A full explanation from Stats Canada says:

The CPI excluding gasoline increased 2.2% in the 12 months to September; stripping away all energy components, the CPI advanced 1.9%.

Of the eight major components of the CPI, shelter costs remained the primary contributor to the 12-month increase in consumer prices in September. Food costs replaced transportation as the second leading contributor. Transportation costs, now third, continued to be buoyed by higher gasoline prices, although lower prices for vehicles have had a moderating effect.

Increasing costs for mortgage interest, natural gas and fuel oil and other fuels continued to propel costs for shelter. Nearly all food items registered price increases, but bread and cereal products, fresh fruit and vegetables and dairy products contributed significantly to higher food prices in September.

So if you are to believe the numbers inflation without oil isn’t too bad, but with oil prices added things are not quite so good. Given the free fall in the price of gasoline and oil, will we start seeing a big drop in Inflation, or even Deflation soon? Good question.

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Consumer Price Index and major components
(2002=100)
	Relative importance	September 2007	September 2008	September 2007 to September 2008
		Unadjusted		% change
All-items	100.00	111.9	115.7	3.4
Food	17.04	110.9	117.1	5.6
Shelter	26.62	117.8	123.1	4.5
Household operations and furnishings	11.10	103.7	105.6	1.8
Clothing and footwear	5.36	97.4	96.1	-1.3
Transportation	19.88	116.9	122.4	4.7
Health and personal care	4.73	107.6	109.4	1.7
Recreation, education and reading	12.20	103.4	103.9	0.5
Alcoholic beverages and tobacco products	3.07	126.6	128.0	1.1
All-items (1992=100)		133.2	137.7	3.4
Special aggregates
Goods	48.78	107.8	111.5	3.4
Services	51.22	115.9	119.8	3.4
All-items excluding food and energy	73.57	109.7	110.8	1.0
Energy	9.38	136.6	161.5	18.2
Core CPI	82.71	110.5	112.4	1.7
1. 2005 CPI basket weights at April 2007 prices, Canada, effective May 2007. Detailed weights are available under the Documentation section of survey 2301 at (http://www.statcan.gc.ca/english/sdds/index.htm). 2. Figures may not add to 100% due to rounding. 3. The measure of Core Consumer Price Index (CPI ) excludes from the all-items CPI the effect of changes in indirect taxes and eight of the most volatile components identified by the Bank of Canada: fruit, fruit preparations and nuts; vegetables and vegetable preparations; mortgage interest cost; natural gas; fuel oil and other fuel; gasoline; inter-city transportation; and tobacco products and smokers' supplies. For additional information on Core CPI, please consult the Bank of Canada website (www.bankofcanada.ca/en/inflation/index.htm).

Black Friday for Stocks?

Futures for all American indexes are way down and it looks like another Black sell off Friday ahead for investors. More bargains to be had, but for those holding stocks, more money going out the window, for now.

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.