Consumer Price Index

Consumers paid 2.3% more in March than the same month a year earlier for the goods and services included in the Consumer Price Index (CPI) basket. This increase followed a 12-month rise of 2.1% in February.

The CPI excluding energy was up 1.7% from March 2004 to March 2005. The 12-month increase was slightly higher than the ones registered since October 2004, when they ranged between 1.5% and 1.6%.

The All-items index, excluding the eight volatile components identified by the Bank of Canada, rose by 1.9% between March 2004 and March 2005, a slight increase over the 1.8% rise of February.

Between February and March, the All-items index rose by 0.6% after edging up 0.4% in February. Prices for gasoline and fresh vegetables were the major factors behind this increase in the monthly change.

On a monthly basis, the All-items index excluding the eight volatile components identified by the Bank of Canada was up 0.4% following a 0.3% increase in February.

For the 11^th consecutive month, gasoline prices remain the main factor of the 12-month increase in the CPI

In March, the CPI was 2.3% higher compared with March 2004. Upward pressure was exerted primarily by gasoline prices, homeowners' replacement cost, restaurant meals prices, property taxes and fuel oil prices.

However, these increases were moderated by lower prices for computer equipment and supplies, fresh vegetables, and traveller accommodation.

On average, gasoline prices in March were 11.2% higher than in March 2004. Residents of Manitoba experienced the highest increases (+16.4%), while those of Newfoundland and Labrador saw the lowest (+7.0%).

Homeowners' replacement cost, which represents the worn out structural portion of housing and is estimated using new housing prices (excluding land), rose 5.9% over March 2004, a 12-month increase identical to that of February. This advance is attributed to higher prices for construction materials and labour.

Consumers paid 2.9% more for restaurant meals in March than the same month a year earlier.

The changes in property taxes reflected in the CPI in October 2004 (+4.3%) are still playing a large part in the 12-month rise in the All-items index.

Fuel oil prices jumped on average by 25.8% between March 2004 and March 2005. Increases occurred in all provinces, ranging from 22.4% in Ontario and Newfoundland and Labrador to 29.7% in British Columbia.

A number of factors exerted a moderating effect on the 12-month increase in the All-items index. These included the index for computer equipment and supplies, which has dropped by 21.1% compared to March 2004.

Fresh vegetable prices were 4.7% lower than in March 2004, solely under the influence of "other fresh vegetables" (-8.7%), since prices for potatoes (+7.6%), tomatoes (+0.6%) and lettuce (+4.4%) were up.

The index for traveller accommodation was down 5.0% compared with March 2004. Price decreases were recorded in all provinces except Saskatchewan (+0.7%).

For a third consecutive month, the increase in gasoline prices pushed up the index

Between February and March, the CPI rose by 0.6%, from 125.8 to 126.5 (1992=100). Higher prices for gasoline, women's clothing, and travel tours accounted for most of this increase. Lower prices for the purchase and leasing of automotive vehicles, fresh fruit, and traveller accommodation nonetheless exerted a mitigating effect on the increase.

Gasoline prices were up 5.2% in March, representing a third straight monthly rise. Increases ranged from 1.5% in Newfoundland and Labrador to 5.9% in Quebec.

Between February and March, prices for women's clothing were up 6.0%. Price increases are usually seen in March when the new summer collections are introduced.

The index for travel tours climbed by 5.0% in March. An increase of this magnitude is normal in March, when demand is at its highest. The strongest rise was recorded in Ontario (+8.2%), whereas British Columbia posted a slight decrease (-0.9%).

One of the factors that exerted downward pressure on the All-items index between February and March was a 0.6% reduction in prices for the purchase and leasing of automotive vehicles. This monthly decrease is attributed to increases in the financial incentives offered in March by some automotive vehicle manufacturers.

Prices for apples (-3.1%), oranges (-4.5%), bananas (-0.6%) and "other fresh fruits" (-7.7%) were lower in March, pushing down the index for fresh fruits by 5.5%.

Travellers in Canada enjoyed a 2.9% reduction in prices for traveller accommodation in March. It is normal to see lower prices in March, when winter activities are ending and vacationers are waiting for warmer weather to travel. Decreases were observed by residents of every province except Prince Edward Island, Nova Scotia and New Brunswick.

The seasonally adjusted CPI rose between February and March

Seasonally adjusted, the CPI was up 0.3% between February and March.

The indexes for transportation (+0.9%), shelter (+0.3%), clothing and footwear (+1.3%), alcoholic beverages and tobacco products (+0.9%), food (+0.2%), health and personal care (+0.4%), as well as household operations and furnishings (+0.1%) pushed up the All-items index.

The seasonally adjusted index for recreation, education and reading (-0.2%) exerted downward pressure.

All-items index excluding the eight most volatile components

The All-items index excluding the eight volatile components identified by the Bank of Canada rose by 1.9% between March 2004 and March 2005. The main contributors to this increase were homeowners' replacement cost (+5.9%), restaurant meal prices (+2.9%) and property taxes (+4.3%). The increase was partially offset by lower prices for computer equipment and supplies (-21.1%) and for traveller accommodation (-5.0%).

Between February and March, the All-items index excluding the eight volatile components identified by the Bank of Canada increased by 0.4%, largely under the influence of higher prices for women's clothing (+6.0%), travel tours (+5.0%) and men's clothing (+2.0%). The decrease in prices for the purchase and leasing of automotive vehicles (-0.6%) accounted for most of the moderating effect on this increase.

Energy

The energy index climbed 9.5% between March 2004 and March 2005, mainly as a result of higher gasoline prices (+11.2%). Higher prices for fuel oil (+25.8%), natural gas (+10.3%), electricity (+3.4%), as well as for fuel, parts and supplies for recreational vehicles (+7.6%) also contributed to pushing up the energy index.

On a monthly basis, the energy index rose 3.0%, mainly owing to higher gasoline prices (+5.2%). Prices for fuel oil (+4.0%), natural gas (+1.2%) and fuel, parts and supplies for recreational vehicles (+2.5%) also served to push the index up. Electricity prices (-0.1%) alone exerted a very slight dampening effect on this increase.

Available on CANSIM: tables 326-0001, 326-0002, 326-0009, 326-0012 and 326-0016 to 326-0018.

Definitions, data sources and methods: survey number 2301.

More information about the concepts and use of the CPI are also available online in Your Guide to the Consumer Price Index (62-557-XIB, free).

Available at 7 a.m. online under Today's news releases from The Daily, then Latest Consumer Price Index.

The March 2005 issue of the Consumer Price Index, Vol. 84, no. 3 (62-001-XIB, $9/$83; 62-001XPB, $12/$111) is now available.

The April Consumer Price Index will be released on May 20.

For more information, or to enquire about the concepts, methods or data quality of this release, call Rebecca McDougall (1-866-230-2248; 613-951-9606; fax: 613-951-1539; infounit@statcan.gc.ca), Prices Division.