Consumer Price Index

The 12-month change in the Consumer Price Index (CPI) held steady at 2.2% in March 2006. Excluding energy, the CPI rose 1.7% between March 2005 and March 2006, up slightly from 1.6% in February.

The All-items index excluding the eight volatile components identified by the Bank of Canada rose 1.7% on a 12-month basis, the same increase as in the previous two months.

On a monthly basis, the CPI rose 0.5% between February and March 2006, after decreasing 0.2% in the previous month. This increase was mainly due to rising gasoline prices. Excluding the energy components, the index rose 0.4%.

The All-items index excluding the eight volatile components identified by the Bank of Canada increased 0.4% between February and March, mainly due to price increases for women's clothing.

The 12-month change in the CPI stays the same as last month

In March, consumers paid 2.2% more than in March 2005 for the goods and services included in the CPI basket, matching February's increase. Higher prices for gasoline, for the purchase and leasing of automobile vehicles and an increase in homeowners' replacement cost were partly offset by lower prices for computer equipment and supplies, as well as for women's and men's clothing.

Average gasoline prices were 7.4% higher in March compared to the same month a year ago, the same average 12-month increase as in February 2006. Higher prices occurred across the country with increases ranging from 5.7% in Newfoundland and Labrador to 9.1% in Alberta. In March, the average retail price for unleaded gasoline at a self service station in Toronto was 91.1 cents per litre compared to 83.8 cents in March 2005. In Montréal, the average price was 98.2 cents per litre this March compared to 91.4 cents per litre last March. For Vancouver, prices were 97.1 cents per litre compared to 92.0 cents for the same time last year.

The price of the purchase and leasing of automotive vehicles rose 3.5% in March compared to one year ago. All provinces posted increases, with the most modest in Alberta (+3.0%) and the strongest in Manitoba (+5.5%).

Homeowners' replacement cost, which represents the worn out structural portion of housing, and is estimated using new housing prices (excluding land), increased by 6.0% between March 2005 and March 2006. All provinces showed increases with Alberta posting the highest (+20.2%). Since December 2005, the Alberta homeowners' replacement cost index has recorded 12-month increases above 10%, from 11.7% in December 2005 to above 20% in March 2006. Alberta also showed strong numbers for housing permits over the same period.

The index for computer equipment and supplies dropped 16.7% compared to March 2005. This index is at a level of 12.5 (1995=100).

Both women's and men's clothing posted lower prices compared to March 2005. Driven by imported products available to Canadian customers, lower prices for clothing items have been the usual trend over the last few years. The women's clothing index was 3.4% lower in March 2006 compared to March 2005 and the men's clothing index was 3.9% lower.

Six of the eight major components of the CPI showed higher prices in March 2006 than in March 2005. The indexes for shelter (+3.5%), transportation (+3.5%), food (+2.4%) and alcoholic beverages and tobacco products (+2.7%) exerted the strongest upward pressure. The indexes for clothing and footwear (-2.5%), and for recreation, education and reading (-0.2%) exerted downward pressure.

After decreasing in February, the CPI is up in March due to gasoline prices

Between February and March, the CPI rose by 0.5% from a level of 128.6 to 129.3 (1992=100). Increases in the prices of gasoline and women's clothing were offset in part by lower prices for fresh vegetables, for the purchase and leasing of automotive vehicles and for fresh fruits.

Gasoline prices rose by 5.2% between February and March 2006, after having dropped by 6.8% in February. Except for Newfoundland and Labrador, and Prince Edward Island, all provinces recorded increases which ranged from 2.3% in New Brunswick to 8.1% in Manitoba. Crude oil prices fluctuated during the first half of March, but then steadily went up towards the end of the month. Price increases for crude oil and wholesale gasoline lead to higher retail prices paid at the pump in March.

In March, retailers usually introduce their summer collections which lead to higher prices as compared to February. This year, the women's clothing index increased by 6.8% in March compared to a month earlier.

Exerting downward pressure on the All-items CPI, vegetable prices decreased by 6.5% in March. All categories of fresh vegetables posted lower prices but tomatoes and "other fresh vegetables" were the main contributors to the drop.

A 0.3% drop in the price for the purchase and leasing of automotive vehicles was attributable to higher financial incentives offered in March by some automotive vehicle manufacturers.

All categories of fresh fruits recorded price declines in March, leading to a 3.1% fall in the fresh fruit index. This decrease was mainly caused by lower prices for oranges, as well as for "other fresh fruit" imported from South and Central America.

The seasonally adjusted CPI increased between February and March

Seasonally adjusted, the CPI increased by 0.2% between February and March 2006.

Upward pressure came from the indexes for transportation (+1.3%), shelter (+0.2%), clothing and footwear (+0.7%), alcoholic beverages and tobacco products (+0.7%), food (+0.1%), and health and personal care (+0.1%) indexes.

The seasonally adjusted index was pushed down by household operations and furnishings (-0.2%) and recreation, education and reading (-0.1%).

The All-items index excluding the eight volatile components

The All-items index excluding the eight volatile components identified by the Bank of Canada increased by 1.7% between March 2005 and March 2006. The main factors behind this increase were the purchase and leasing of automotive vehicles (+3.5%), homeowners' replacement cost (+6.0%), electricity (+4.8%), and restaurant meals (+3.1%). The increase was moderated by a drop in computer equipment and supplies (-16.7%), women's clothing (-3.4%), men's clothing (-3.9%), and video equipment (-9.1%).

Between February and March 2006, the All-items index excluding the eight volatile components identified by the Bank of Canada increased by 0.4%. The main factors exerting upward pressure were women's clothing (+6.8%), automotive vehicle insurance premiums (+2.0%), and travel tours (+4.9%). Factors pushing the index downward were the purchase and leasing of automotive vehicles (-0.3%), house and yard tools (-2.5%), and fresh or frozen beef (-1.1%).

Energy

After an 8.1% rise between February 2005 and February 2006, the energy index rose 7.4% between March 2005 and March 2006.

Although all components contributed to the increase in the energy index in March 2006, the gasoline index (+7.4%) was again the main factor, followed by natural gas (+14.4%), electricity (+4.8%), fuel oil (+8.0%), and fuel, parts and supplies for recreational vehicles (+6.2%).

The energy index rose by 2.3% on a monthly basis, largely under the influence of gasoline prices (+5.2%). Except for the fuel, parts and supplies for recreational vehicles index, which increased 2.4%, all other indexes fell or were unchanged. The natural gas index and fuel oil index both decreased by 1.2%, while electricity prices were unchanged from last month.

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 2006 issue of the Consumer Price Index, Vol. 85, no. 3 (62-001-XIB, $9/$83; 62-001-XPB, $12/$111) is now available.

The Consumer Price Index for April will be released on May 18.

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