The Consumer Price Index and Inflation are helpful concepts if confusing. The CPI measures the acceleration of prices, not their velocity. Unfortunately, the CPI rarely reflects a negative number (e.g., prices dropped).
This simple calculation says a few things:
- Prices are up 18.67% from October 2019 to July 2024 in the Stats Canada Basket.
- A simple example is a product that cost $10 in October 2019 and now costs $11.87 (in general).
- The most significant jump in prices is caused by gasoline.
- Food is up 27.08%, so $10 of groceries about 5 years ago now costs $12.53
- Shelter is up a lot, and so is energy.
- The basket's base of 100 is based on 2002. This means that prices have increased 63% since 2002, which again seems low.
- Food is nearly doubling at 90+%, so yes, you are paying almost twice what you did in 2019.
- Energy and Gasoline have doubled since 2002
These numbers seem abstract, and for many folks, they seem low, but I won't start arguing with the statisticians at Stats Canada.
I note that Wealthy Barber says the CPI Government numbers may not be "spot on." I think I agree with him on that one.
Previous Rants About Inflation
- Food Inflation at 5.4% for October 2023, better but still rising
- Grocery Inflation in Canada at 8.5% in July in 2023, doesn’t look like things are getting much better.
- June 2023 Inflation was at 2.8% but Groceries were at an astronomical 9.1%.
- In 2022 Inflation at 7.7% May 2022 in Canada was near the high point of things.
- Inflation at 6.7% March 2022 in Canada goodness that was a bit of a jump?
- Inflation 4.4% September 2021 shows that this started a while ago.
- Looks like COVID leads to Inflation in August 2021 ?
- I talked about this in April of 2021, didn’t think it was going to get this bad, this fast.
- Inflation at 2011 levels ? OK, so I have even written this title before? Yes, I need more imagination.
- Bank in 2017 Inflation Still Under 2 Pct (for now) so things were OK back then too.
- Previously I have written a lot about inflation, here is a small taste. Note the snappy titles.
- The year was 2016
- Shocking Electricity Price in August (CPI Canada)
- Electricity Prices Continue to Sizzle in July
- Zap! Electricity Prices Pushes Inflation in June
- Expensive Food and Shelter in April in Canada
- Good Food Still Is Not Cheap in Canada (Inflation for March)
- Food Prices Continue to Rise for February
- Veggies up 18.2 pct in Canada
- Now for 2015
- The year was 2016
And that is just scratching the surface.
