Higher Gas Bites
Stats Canada came out with the monthly Consumer Price Index (aka CPI or Inflation) numbers for periods ending in October 2010, and Gasoline prices may be triggering a fresh round of discussions about Hyper-Inflation (again).
The year over year rate for the period ending in October 2010 is now 2.4% (up from September’s 1.9%) and most of the blame is aimed at Gasoline prices (which have been moving up steadily for the past little while). Without the sting of Gasoline, the CPI is up 2.1% which is starting to move up, and could cause upward pressure for Interest Rates.
A very telling statement from the release is:
Energy prices advanced 9.1% during the 12 months to October, following a 5.6% increase in September. In addition to rising gasoline prices, prices for electricity increased 8.1%, while natural gas prices rose 10.6%.
Given that the Ontario Government is now trying to bring the Electrical Rates down a little with a change in their Peak Usage periods, should be interesting if that helps in May, when it is finally enacted.
Bank of Canada View
The Bank of Canada’s basket of goods was up 1.8% (year over year) in October, which is starting to push into the area where the bank might start thinking about an interest rate goose given their concerns about inflationary spirals and such.
The Big Table
Want to see where your favorite purchase fits into the Inflationary growth we are having, then have a look at the big picture table found here:
| Relative import1 | Oct 2009 | Sept 2010 | Oct 2010 | Sept to Oct 2010 | Oct 2009 to Oct 2010 | |
|---|---|---|---|---|---|---|
| Not seasonally adjusted | ||||||
| (2002=100) | % change | |||||
| All-items | 100.002 | 114.6 | 116.9 | 117.4 | 0.4 | 2.4 |
| Food | 17.04 | 120.1 | 122.9 | 122.7 | -0.2 | 2.2 |
| Shelter | 26.62 | 121.2 | 123.9 | 124.6 | 0.6 | 2.8 |
| Household operations, furnishings and equipment | 11.10 | 107.9 | 109.4 | 109.3 | -0.1 | 1.3 |
| Clothing and footwear | 5.36 | 95.0 | 92.8 | 94.9 | 2.3 | -0.1 |
| Transportation | 19.88 | 113.4 | 117.1 | 118.6 | 1.3 | 4.6 |
| Health and personal care | 4.73 | 112.9 | 116.1 | 116.0 | -0.1 | 2.7 |
| Recreation, education and reading | 12.20 | 104.5 | 105.6 | 105.2 | -0.4 | 0.7 |
| Alcoholic beverages and tobacco products | 3.07 | 131.4 | 134.4 | 134.5 | 0.1 | 2.4 |
| Special aggregates | ||||||
| Core CPI3 | 82.71 | 114.2 | 115.8 | 116.3 | 0.4 | 1.8 |
| All-items excluding energy | 90.62 | 113.4 | 115.1 | 115.5 | 0.3 | 1.9 |
| Energy | 9.38 | 128.8 | 138.7 | 140.5 | 1.3 | 9.1 |
| Gasoline | 4.92 | 139.5 | 147.0 | 151.8 | 3.3 | 8.8 |
| All-items excluding food and energy | 73.57 | 112.0 | 113.4 | 113.9 | 0.4 | 1.7 |
| Goods | 48.78 | 107.0 | 109.2 | 109.7 | 0.5 | 2.5 |
| Services | 51.22 | 122.1 | 124.5 | 124.9 | 0.3 | 2.3 |
