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Consumer Price Index

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August 2010 (Previous release)

Consumer prices rose 1.7% in the 12 months to August, following a 1.8% increase in July.

 The 12-month change in the CPI and the CPI excluding energy

Overall, energy prices rose 5.0% between August 2009 and August 2010, following a 7.9% increase during the 12-month period to July. Excluding energy, the Consumer Price Index (CPI) was up 1.4% in August.

Within the energy price index, prices for electricity rose 7.7% in August compared with the same month a year earlier.

Higher consumer prices were also recorded in August for homeowner's replacement costs (+5.5%), passenger vehicle insurance premiums (+5.1%) and food purchased from restaurants (+2.5%).

Seasonally adjusted monthly CPI increases

On a seasonally adjusted monthly basis, consumer prices rose 0.1% in August, following a 0.6% increase in July. The food index was up 0.3%, while the health and personal care index rose 0.7%. The transportation index fell 0.3%.

12-month change: Seven of the eight CPI major components rise

Prices increased in seven of the eight major components of the CPI in the 12 months to August; the only exception was clothing and footwear.

 Of the eight major Consumer Price Index components, seven register increases in August

Shelter costs rose 2.4% in August compared with the same month last year. In addition to paying higher prices for electricity and homeowner's replacement costs, consumers also paid more for rent and natural gas.

The mortgage interest cost index, which measures the change in the interest portion of payments on outstanding mortgage debt, declined 3.8% in August, following a 4.2% decrease in July.

Transportation costs went up 2.0% in the 12 months to August after rising 2.7% in July. As well as paying higher prices for passenger vehicle insurance premiums, consumers paid 2.2% more for the purchase of passenger vehicles in August. Gasoline prices rose 1.9% during the 12-month period to August, after posting a 4.8% increase in July.

Food prices advanced 1.6%, after increasing 1.1% in July. In August, higher prices were recorded for both food purchased from restaurants and food purchased from stores. Prices rose for dairy products and eggs, sugar and confectionery, bakery and cereal products, non-alcoholic beverages, and vegetables and vegetable preparations.

Prices in the household operations, furnishings and equipment component were up 1.9% in August compared with the same month last year. Higher prices were recorded for telephone services, child care and domestic services, as well as pet food and supplies. Prices for furniture, household textiles and household appliances fell.

In the health and personal care component, prices rose 3.5%.

Prices in the recreation, education and reading component rose 0.6%. Consumers paid more for cablevision and satellite services as well as for the use of recreational facilities and services. Prices for home entertainment equipment, parts and services, and computer equipment and supplies fell.

Consumers paid 2.2% less for clothing and footwear in August than they did a year earlier. Lower prices were recorded for women's and children's clothing. Prices for women's footwear also declined in August.

12-month change: Consumer prices increase in all provinces

Consumer prices increased in all provinces in the 12 months to August. Ontario recorded the largest year-over-year increase.

Consumer prices rose 2.9% in Ontario between August 2009 and August 2010, matching the increase in July. Prices for electricity, passenger vehicle insurance premiums, and homeowner's replacement costs went up. As well, Ontarians paid 3.8% more for gasoline.

Prices in British Columbia rose 1.5% during the 12-month period to August, after a 2.0% increase in July. In August, prices for food purchased from restaurants increased 6.7% and gasoline prices advanced 6.5%. Homeowner's replacement costs also went up.

In Quebec, prices increased 0.6% in the 12 months to August. Higher prices were recorded for telephone services, passenger vehicle insurance premiums, child care and domestic services, as well as the purchase of passenger vehicles.

 Ontario records the largest year-over-year increase of all provinces in August

Prices increased 2.4% in Newfoundland and Labrador. Upward price movements were recorded for electricity, meat, food purchased from restaurants, and the purchase of passenger vehicles.

12-month change in the Bank of Canada's core index

The Bank of Canada's core index advanced 1.6% in the 12 months to August, matching the rate of growth recorded in July.

The seasonally adjusted monthly core index posted no change in August, following a 0.1% increase in July.

For a more detailed analysis, consult the publication The Consumer Price Index.

Available on CANSIM: tables 326-0009, 326-0012, 326-0015 and 326-0020 to 326-0022.

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-X, free) from the Key resource module of our website under Publications.

The August 2010 issue of The Consumer Price Index, Vol. 89, no. 8 (62-001-X, free), is now available from the Key resource module of our website under Publications. A paper copy is also available ($12/$111). A more detailed analysis of the CPI is available in this publication. See How to order products.

The September Consumer Price Index will be released on October 22.

For more information, or to enquire about the concepts, methods or data quality of this release, contact the Dissemination Unit (toll-free 1-866-230-2248; 613-951-9606; fax: 613-951-2848; cpd-info-dpc@statcan.gc.ca), Consumer Prices Division.

Table 1

Consumer Price Index and major components, Canada
  Relative importance1 August 2009 July 2010 August 2010 July to August 2010 August 2009 to August 2010
    Not seasonally adjusted
    (2002=100) % change
All-items 100.002 114.7 116.8 116.7 -0.1 1.7
Food 17.04 121.5 123.7 123.5 -0.2 1.6
Shelter 26.62 121.1 124.3 124.0 -0.2 2.4
Household operations, furnishings and equipment 11.10 107.0 109.2 109.0 -0.2 1.9
Clothing and footwear 5.36 92.1 88.8 90.1 1.5 -2.2
Transportation 19.88 114.8 117.4 117.1 -0.3 2.0
Health and personal care 4.73 112.5 115.6 116.4 0.7 3.5
Recreation, education and reading 12.20 104.4 105.1 105.0 -0.1 0.6
Alcoholic beverages and tobacco products 3.07 131.4 134.5 134.4 -0.1 2.3
Special aggregates            
Core CPI3 82.71 113.8 115.5 115.6 0.1 1.6
All-items excluding energy 90.62 113.3 115.0 114.9 -0.1 1.4
Energy 9.38 132.6 139.8 139.2 -0.4 5.0
Gasoline 4.92 144.7 147.8 147.4 -0.3 1.9
All-items excluding food and energy 73.57 111.5 113.0 113.0 0.0 1.3
Goods 48.78 107.8 109.1 109.1 0.0 1.2
Services 51.22 121.6 124.5 124.3 -0.2 2.2
2005 CPI basket weights at April 2007 prices, Canada, effective May 2007. Detailed weights are available under the Documentation section of survey 2301 (www.statcan.gc.ca/imdb-bmdi/index-eng.htm).
Figures may not add to 100% as a result of rounding.
The measure of the core Consumer Price Index (CPI) excludes from the all-items CPI the effect of changes in indirect taxes and eight of the most volatile components identified 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. For additional information on the core CPI, please consult the Bank of Canada website (www.bankofcanada.ca/en/inflation/index.htm).

Table 2

Consumer Price Index by province, and for Whitehorse, Yellowknife and Iqaluit
  Relative importance1 August 2009 July 2010 August 2010 July to August 2010 August 2009 to August 2010
    Not seasonally adjusted
    (2002=100) % change
Canada 100.002 114.7 116.8 116.7 -0.1 1.7
Newfoundland and Labrador 1.27 115.0 117.6 117.8 0.2 2.4
Prince Edward Island 0.35 118.3 119.5 119.7 0.2 1.2
Nova Scotia 2.56 116.7 118.6 118.7 0.1 1.7
New Brunswick 1.97 114.1 115.9 116.0 0.1 1.7
Quebec 21.05 113.9 114.5 114.6 0.1 0.6
Ontario 41.22 113.7 117.0 117.0 0.0 2.9
Manitoba 3.06 114.5 114.7 114.8 0.1 0.3
Saskatchewan 2.64 117.9 118.5 118.8 0.3 0.8
Alberta 11.43 122.0 123.3 122.7 -0.5 0.6
British Columbia 14.29 112.8 114.6 114.5 -0.1 1.5
Whitehorse 0.06 114.2 115.1 115.1 0.0 0.8
Yellowknife 0.08 116.3 118.0 118.0 0.0 1.5
Iqaluit (Dec. 2002=100) 0.02 114.0 112.1 112.1 0.0 -1.7
2005 CPI basket weights at April 2007 prices, Canada, effective May 2007. Detailed weights are available under the Documentation section of survey 2301 (www.statcan.gc.ca/imdb-bmdi/index-eng.htm).
Figures may not add to 100% as a result of rounding.

Table 3

Consumer Price Index and major components
  Relative importance1 June 2010 July 2010 August 2010 June to July 2010 July to August 2010
    Seasonally adjusted
    (2002=100) % change
All-items 100.002 115.5 116.2 116.3 0.6 0.1
Food 17.04 122.4 123.2 123.6 0.7 0.3
Shelter 26.62 123.3 124.3 124.0 0.8 -0.2
Household operations, furnishings and equipment 11.10 108.6 109.4 109.3 0.7 -0.1
Clothing and footwear 5.36 91.5 90.5 90.7 -1.1 0.2
Transportation 19.88 117.3 117.4 117.1 0.1 -0.3
Health and personal care 4.73 114.5 115.5 116.3 0.9 0.7
Recreation, education and reading 12.20 103.6 104.0 103.9 0.4 -0.1
Alcoholic beverages and tobacco products 3.07 132.2 134.5 134.4 1.7 -0.1
Special aggregates            
Core CPI3 82.71 115.5 115.6 115.6 0.1 0.0
All-items excluding food and energy 73.57 112.6 112.9 113.0 0.3 0.1
2005 CPI basket weights at April 2007 prices, Canada, effective May 2007. Detailed weights are available under the Documentation section of survey 2301 (www.statcan.gc.ca/imdb-bmdi/index-eng.htm).
Figures may not add to 100% as a result of rounding.
The measure of the core Consumer Price Index (CPI) excludes from the all-items CPI the effect of changes in indirect taxes and eight of the most volatile components identified 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. For additional information on the core CPI, please consult the Bank of Canada website (www.bankofcanada.ca/en/inflation/index.htm).