Why is this here? So folks can remember the data from decades ago. Have a look at what was, and compare it to what is happening now.
On Friday December 21, 2012 our friends left Canadians a small Christmas Gift announcing that the Consumer Price Index increase year over year (ending in November) was only 0.8% (i.e. Inflation).
Consumer prices rose 0.8% in the 12 months to November, following a 1.2% gain in October. The November increase was the smallest year-over-year gain in the Consumer Price Index (CPI) since October 2009.
So prices are slowing, but for what reasons, you might ask? Gasoline prices are moderating (for now, but over Christmas expect price gouging at a very non-festive level (IMHO)) and thus CPI is moderating as well.
If you look at the following graph you’ll see how gasoline prices have moderated a little over the past little while too!
Given the new indications that our friends down south may have found a short term fix to their Gasoline gorging with their reserves in previously inaccessible areas, wonder if Gas prices may plummet as they did in the 80’s? Given China will continue needing Oil, maybe the prices will simply moderate, but what will this do to alternate energies, which relied on Oil being higher priced? Should be interesting for the next few years.
Bank of Canada’s core index
The Bank of Canada’s rate is a little higher, but nothing to cause them to want to raise interest rates (yet).
The Bank of Canada’s core index rose 1.2% in the 12 months to November, following a 1.3% increase in October.
On a monthly basis, the seasonally adjusted core index posted no change in November after increasing 0.1% in October.
The seasonally adjusted big picture graphic shows a drop of the curve (wow):
The Big Table
I love the big table because it shows you all the details of each part of the CPI, so have a look and see where you are paying even more these days:
Consumer Price Index and major components, Canada Not seasonally adjusted
| Relative import1 | Nov 2011 | Oct 2012 | Nov 2012 | Oct to Nov 2012 | Nov 2011 to Nov 2012 |
|
|---|---|---|---|---|---|---|
| % | (2002=100) | % change | ||||
| All-items Consumer Price Index (CPI) | 100.002 | 120.9 | 122.2 | 121.9 | -0.2 | 0.8 |
| Food | 15.99 | 129.2 | 130.5 | 131.4 | 0.7 | 1.7 |
| Shelter | 27.49 | 126.3 | 127.6 | 127.5 | -0.1 | 1.0 |
| Household operations, furnishings and equipment | 11.55 | 112.1 | 113.5 | 113.7 | 0.2 | 1.4 |
| Clothing and footwear | 5.31 | 93.1 | 94.7 | 92.5 | -2.3 | -0.6 |
| Transportation | 20.60 | 127.6 | 128.6 | 127.3 | -1.0 | -0.2 |
| Health and personal care | 4.95 | 117.9 | 118.5 | 118.7 | 0.2 | 0.7 |
| Recreation, education and reading | 11.20 | 104.8 | 106.6 | 106.1 | -0.5 | 1.2 |
| Alcoholic beverages and tobacco products | 2.91 | 135.8 | 137.8 | 138.3 | 0.4 | 1.8 |
| Special aggregates | ||||||
| Core CPI3 | 82.15 | 118.8 | 120.2 | 120.2 | 0.0 | 1.2 |
| All-items CPI excluding energy | 89.92 | 118.2 | 119.2 | 119.3 | 0.1 | 0.9 |
| Energy4 | 10.08 | 154.1 | 159.5 | 153.8 | -3.6 | -0.2 |
| Gasoline | 5.80 | 175.2 | 186.6 | 175.9 | -5.7 | 0.4 |
| All-items CPI excluding food and energy | 73.93 | 115.7 | 116.7 | 116.7 | 0.0 | 0.9 |
| Goods | 47.80 | 113.8 | 114.5 | 113.8 | -0.6 | 0.0 |
| Services | 52.20 | 127.8 | 129.8 | 129.9 | 0.1 | 1.6 |
Inflation for 2012 Stories
- Inflation Below 1% to end 2012 in Canada. Food prices rose 1.5% year over year in December, after a 1.7% increase in November. Consumers paid 2.2% more for restaurant food and 4.4% more for meat. In contrast, prices declined 5.8% for fresh vegetables.
- CPI Slowing for November 2012 in Canada. Consumer prices rose 0.8% in the 12 months to November, following a 1.2% gain in October. The November increase was the smallest year-over-year gain in the Consumer Price Index (CPI) since October 2009.
- Canada Inflation Steady at 1.2% in October 2012: CPI and Core Index Breakdown . Canada’s inflation stayed steady at 1.2% in October 2012. Moderating energy prices helped ease CPI, while food and shelter costs rose slightly.
- Consumer prices rose 1.2% in the 12 months to September 2012, matching the increase in August 2012. Higher energy prices, particularly for gasoline and electricity, led the advance in the Consumer Price Index (CPI) for September. This was tempered by lower year-over-year price increases for the purchase of passenger vehicles and for food purchased from stores.
- Slowing Inflation some More for August 2012 in Canada. Canada’s inflation slowed to 1.2% in August 2012, with modest price increases for gas, food, and shelter. Core inflation held at 1.6%, offering relief to consumers.
- Inflation Lower in July in Canada 2012 . Canada’s inflation in July 2012 dropped to 1.3%, driven by lower gas and clothing prices, while food costs continued to rise. A look back at what drove CPI shifts.
- CPI Rate Up a Little for June 2012 in Canada. Canada’s CPI rose 1.5% in June 2012, driven by higher vehicle and electricity prices. Core inflation reached 2.0%, nearing the Bank of Canada’s rate-hike threshold.
- CPI Dropped in May 2012, Wow! Yes, for once the prices dropped. Gas prices were the main reason for the drop in price increases. Keep that in mind: prices were still going up, just not that fast.
- April’s CPI Child is Still Inflating (in Canada). Energy prices increased 1.1% in the 12 months to April 2012, following a 5.1% rise in March. The slower increase in April 2012 was largely due to smaller price gains in gasoline and electricity, as well as price declines in natural gas (-13.9%).
- CPI Sneaking Back up for January 2012. Food prices rose 4.2% on a year-over-year basis in January following a 4.4% increase in December. In January, consumers paid 4.9% more for food purchased from stores and 2.8% more for food purchased from restaurants compared with January 2011.
- Inflation Slows a Little to End 2011. Consumers paid 4.4% more for food in the 12 months to December, down from 4.8% the month before. The year-over-year change for food purchased from stores eased in December to a 5.0% gain from 5.7% in November.
