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Wednesday, October 23, 2002

Consumer Price Index

September 2002

Consumers paid 2.3% more in September than in September 2001 for the goods and services included in the Consumer Price Index (CPI) basket. This increase followed a 2.6% rise in August from August 2001. The smaller increase in September compared with August is explained by the 1.8% fall in energy prices from September 2001 to September 2002; energy prices had remained stable in August.

The twelve-month change in the CPI excluding energy was 2.8% in September, similar to the increases in August (+2.9%) and July (+2.8%).

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Cigarette prices, which rose 39.7% from September 2001, once again exerted the strongest upward pressure on the All-items CPI. This rise was essentially the result of increases in provincial and federal taxes introduced in the fall of 2001 and the spring of 2002.

Automotive vehicle insurance premiums jumped 15.7% and electricity prices rose 12.8% from September 2001. Electricity prices were up mostly because of sharp increases in Ontario.


Note to readers

Several changes will be made to the Consumer Price Index (CPI) starting with the January 2003 data to be released on February 27, 2003.

The basket of goods and services used to calculate the CPI will be updated to reflect changes in consumer expenditure patterns. Expenditure patterns for 2001 will replace those for 1996.

Some modifications will be made to the commodity classification system. Detailed indexes for the women's, men's and children's clothing categories will no longer be published. The only indexes that will be published are the women's, men's and children's clothing aggregates.

Indexes for Internet service provision and financial services will be published on the time base of December 2001=100.

Selected indexes will be published for Iqaluit.

The time base will remain unchanged at 1992=100.

Data based on the new basket will be loaded onto the existing CANSIM II tables and vectors. The only changes involve the termination of the clothing series mentioned above and the addition of vectors for Iqaluit, Internet service provision and financial services. The new vector numbers will be announced once they have been determined in January 2003.

As well, due to changes in the Ontario electricity market that became effective May 1 2002, it was necessary to adjust the treatment of electricity prices in the CPI for that province. A question and answer fact sheet that explains those changes is now available.


Homeowners' replacement cost, the prices of restaurant meals and rent also added to the upward pressure on the All-items CPI.

The marked decrease in natural gas prices (-25.8%) and the drop in mortgage interest cost (-3.3%) were the strongest moderating effects on the rise in the All-items CPI. Declines in traveller accommodation and gasoline prices also helped slow the rise in the CPI.

CPI shows no monthly change

The CPI remained unchanged from August to September, following a rise of 0.4% in August. Higher women's clothing prices, tuition fees and natural gas tariffs exerted upward pressure on the All-items CPI, but lower prices for fresh vegetables, traveller accommodation and air transportation exerted downward pressure.

The women's clothing index rose 4.1%, largely because of higher prices for the new fall line items.

Students had to pay 4.8% more this year in tuition fees, a slight acceleration over the increases of the last two years. This rise was nonetheless among the lowest in the past fifteen years. It should be noted, however, that tuition fees doubled over the last ten years.

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In 2002, average tuition fee increases varied from 0.2% for Quebec residents to 21.1% for British Columbia's. Only the tuition fees for Newfoundland and Labrador residents fell (-6.1%). The tuition fee index for a given province takes into account the fact that some of that province's residents attend educational institutions in other provinces.

The natural gas index was up 5.2% in September as a result of price increases in Alberta. This rise is attributable to an increase in natural gas prices, as well as to the partial return to billing for ATCO Gas' Northern subscribers, which includes Edmonton, as the average consumer used up the credit allocated in March 2002.

In March 2002, following the sale of a gas field, ATCO Gas paid its Northern Alberta customers part of the receipts from this sale. This amount was intended to compensate these customers for the future benefits that they would have received (in the form of lower prices) if the company had not sold the gas field. The amount received by these customers corresponds to a fixed amount ($3.325) per gigajoule consumed in 2001. The average consumer received a payment of about $500. Starting in March, the average gas bill of these clients entering into the calculation of the CPI was brought to zero or reduced until the payment amount was exhausted in September.

In September, fresh vegetable prices fell 12.4%. Decreases were attributed mainly to the ongoing supply of local products.

With the end of the summer tourist season, traveller accommodation prices fell on average 5.4%. The residents of every province, except Newfoundland and Labrador (+4.4%), experienced a drop in prices. The traveller accommodation index, like the one for tuition fees, takes into account the fact that the residents of a given province travel to other provinces.

The cost of air transportation fell 3.9% in September 2002, after rising 2.2% in August. This drop was largely attributable to the move from high season prices to intermediate season prices on transatlantic and transpacific routes.

Available on CANSIM: tables 326-0001 to 326-0004, 326-0009, 326-0010 and 326-0012.

Information on methods and data quality available in the Integrated Meta Data Base: survey number 2301.

Available at 7 am on Statistics Canada's Web site (http://www.statcan.gc.ca). From the home page, choose Today's news releases from The Daily, then Latest Consumer Price Index release.

The September 2002 issue of the Consumer Price Index (62-001-XIB, $8/$77; 62-001-XPB, $11/$103) is now available.

The October 2002 Consumer Price Index will be released on November 21.

For more information on the basket update or to obtain the fact sheet on the treatment of electricity prices in Ontario, contact Client Services (1-866-230-2248; 613-951-1606; fax: 613-951-1539; infounit@statcan.gc.ca), Prices Division.

For more information, or to enquire about the concepts, methods or data quality of this release, call Louise Chaîné (1-866-230-2248; 613-951-9606; fax: 613-951-1539) or Joanne Moreau (613-951-7130), Prices Division.

The Consumer Price Index and major components

(1992=100)

  September 2002 August 2002 September 2001 August to September 2002 September 2001 to September 2002
Unadjusted
      % change
All-items 120.1 120.1 117.4 0.0 2.3
Food 119.2 120.2 116.9 -0.8 2.0
Shelter 114.6 114.2 113.4 0.4 1.1
Household operations and furnishings 113.8 114.3 113.2 -0.4 0.5
Clothing and footwear 107.3 105.0 107.9 2.2 -0.6
Transportation 136.8 137.0 133.0 -0.1 2.9
Health and personal care 115.7 115.6 114.2 0.1 1.3
Recreation, education and reading 128.7 128.5 126.0 0.2 2.1
Alcoholic beverages and tobacco products 129.9 129.8 106.5 0.1 22.0
All-items (1986=100) 153.8        
Purchasing power of the consumer dollar expressed in cents, compared with 1992 83.3 83.3 85.2    
Special Aggregates          
Goods 116.8 116.8 114.8 0.0 1.7
Services 123.9 123.9 120.4 0.0 2.9
All-items excluding food and energy 118.7 118.5 115.2 0.2 3.0
Energy 134.6 133.4 137.0 0.9 -1.8
All-items excluding the eight most volatile components1 121.2 121.0 118.2 0.2 2.5
1Excluded from the All-items CPI are the following eight volatile components, as defined 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. The Bank of Canada further adjusts this series to obtain their measure of core inflation, which also excludes the effect of changes in indirect taxes. For data and information on core inflation, please consult the Bank of Canada Web site (http://www.bankofcanada.ca/inflation).

The Consumer Price Index by province, and for Whitehorse and Yellowknife

(1992=100)

  September 2002 August 2002 September 2001 August to September 2002 September 2001 to September 2002
Unadjusted
      % change
Newfoundland and Labrador 118.1 117.8 115.0 0.3 2.7
Prince Edward Island 119.2 118.8 114.7 0.3 3.9
Nova Scotia 121.2 120.7 117.2 0.4 3.4
New Brunswick 120.1 119.9 115.4 0.2 4.1
Quebec 116.3 116.3 113.7 0.0 2.3
Ontario 121.2 121.7 118.5 -0.4 2.3
Manitoba 123.9 124.1 122.4 -0.2 1.2
Saskatchewan 125.0 124.4 122.1 0.5 2.4
Alberta 125.9 124.3 122.4 1.3 2.9
British Columbia 118.8 118.7 116.7 0.1 1.8
Whitehorse 118.8 118.9 118.5 -0.1 0.3
Yellowknife 117.7 117.4 114.3 0.3 3.0



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Date Modified: 2002-10-23 Important Notices