With all the excitement on Friday, you may not have noticed by the Inflation Rate (i.e. CPI) from Stats Canada was announced and it is back down to 1.0%, which suggests any retaliatory Interest Rate increases may be put on hold (for fear of creating deflation?).
Energy prices rose 1.3% between June 2009 and June 2010, after increasing 6.2% over the 12 months ending in May. Excluding energy, the Consumer Price Index (CPI) advanced 0.9% in June, following a 1.0% increase in May.
The price of gasoline decreased 2.9% in June compared with the same month a year earlier, after rising 6.9% in May. This was the first year-over-year drop in prices at the pump since October 2009.
Energy prices continue to be the big issue these days in terms of prices, and with Ontario slapping the PST/HST onto Gas that just adds more fuel to the fire.
12-month change in the Bank of Canada’s core index
The Bank of Canada’s core index advanced 1.7% in the 12 months to June, following a 1.8% rise in May. Price increases were recorded for the purchase of passenger vehicles, passenger vehicle insurance premiums, homeowner’s replacement costs, electricity and telephone services.
This means there is less reasons to increase interest rates in the near future, from this point of view at least (from the slowing down borrowing side of things, I think the jury is still out on that one).
The Really Big Table
And here is my favorite part the big table, where you can see which of your favorite components took the biggest bite out of you. Luckily, alcohol and tobacco only went up a little bit this month.
| Relative import | June 2009 | May 2010 | June 2010 | May to June 2010 | June 2009 to June 2010 |
|
|---|---|---|---|---|---|---|
| Not seasonally adjusted | ||||||
| (2002=100) | % change | |||||
| All-items | 100.002 | 115.1 | 116.3 | 116.2 | -0.1 | 1.0 |
| Food | 17.04 | 122.2 | 122.9 | 123.0 | 0.1 | 0.7 |
| Shelter | 26.62 | 121.3 | 123.0 | 123.3 | 0.2 | 1.6 |
| Household operations, furnishings and equipment | 11.10 | 107.3 | 108.6 | 108.6 | 0.0 | 1.2 |
| Clothing and footwear | 5.36 | 91.3 | 92.7 | 89.7 | -3.2 | -1.8 |
| Transportation | 19.88 | 116.1 | 118.1 | 117.3 | -0.7 | 1.0 |
| Health and personal care | 4.73 | 112.8 | 114.6 | 114.7 | 0.1 | 1.7 |
| Recreation, education and reading | 12.20 | 103.8 | 103.6 | 104.2 | 0.6 | 0.4 |
| Alcoholic beverages and tobacco products | 3.07 | 131.6 | 132.1 | 132.2 | 0.1 | 0.5 |
| Special aggregates | ||||||
| Core CPI3 | 82.71 | 113.7 | 115.7 | 115.6 | -0.1 | 1.7 |
| All-items excluding energy | 90.62 | 113.6 | 114.6 | 114.6 | 0.0 | 0.9 |
| Energy | 9.38 | 133.9 | 137.4 | 135.7 | -1.2 | 1.3 |
| Gasoline | 4.92 | 147.0 | 147.1 | 142.8 | -2.9 | -2.9 |
| All-items excluding food and energy | 73.57 | 111.7 | 112.8 | 112.7 | -0.1 | 0.9 |
| Goods | 48.78 | 108.6 | 109.4 | 108.7 | -0.6 | 0.1 |
| Services | 51.22 | 121.5 | 123.2 | 123.6 | 0.3 | 1.7 |
