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Consumer Price Index, October 2017

Released: 2017-11-17

Consumer Price Index

October 2017

1.4% increase

(12-month change)

The Consumer Price Index (CPI) increased 1.4% on a year-over-year basis in October, following a 1.6% gain in September. The all-items excluding gasoline index rose 1.3% year over year in October, after increasing 1.1% in September.

Chart 1  Chart 1: The 12-month change in the Consumer Price Index (CPI) and the CPI excluding gasoline
The 12-month change in the Consumer Price Index (CPI) and the CPI excluding gasoline

12-month change in the major components

Prices were up in seven of the eight major CPI components in the 12 months to October, with the transportation and shelter indexes contributing the most to the increase. The clothing and footwear index declined on a year-over-year basis.

Chart 2  Chart 2: Consumer prices increase in seven of the eight major components
Consumer prices increase in seven of the eight major components

Transportation prices rose 3.0% on a year-over-year basis in October, following a 3.8% increase in September. This deceleration was led by gasoline prices, which increased 6.5% year over year in October after increasing 14.1% the previous month in the aftermath of Hurricane Harvey. At the same time, the purchase of passenger vehicles index rose 1.5% month over month in October, providing the impetus for the largest year-over-year gain in this index since March 2017.

The recreation, education and reading index increased 1.5% year over year in October, following a 2.1% increase in September. Prices for travel tours contributed the most to this deceleration, increasing 4.4% in the 12 months to October after a 7.3% gain in September. The recreational services index increased 5.2% on a year-over-year basis in October, following a 14.7% increase in September. Meanwhile, prices for digital computing equipment and devices (-4.4%) declined at a slower rate on a year-over-year basis in October than in September.

Consumer prices for household operations, furnishings and equipment rose 0.2% in the 12 months to October after declining year over year for three consecutive months. Prices for telephone services increased 3.9% on a monthly basis, leading to a 0.1% year-over-year decline in October following a 3.1% decrease in September. Prices for child care services increased 2.6% on a year-over-year basis in October. Additionally, the tools and other household equipment index recorded a smaller year-over-year increase for the month than was seen in September.

12-month change in the provinces

Consumer prices rose less on a year-over-year basis in five provinces in October than in September. Prices in Saskatchewan accelerated, while four provinces registered the same CPI increase as in the previous month.

Chart 3  Chart 3: Consumer prices rise at a slower rate in five provinces
Consumer prices rise at a slower rate in five provinces

Prices in Prince Edward Island increased 1.2% on a year-over-year basis in October after rising 2.4% in September. This was largely attributable to an October 2016 increase in the province's Harmonized Sales Tax, which no longer factors into the 12-month movement of the all-items index. Traveller accommodation prices declined 8.8% year over year in October after increasing 11.1% in September.

The CPI rose 0.9% year over year in Newfoundland and Labrador in October, following a 1.4% gain in September. The property taxes and other special charges index fell 4.2% in the 12 months to October, in contrast to the national-level index, which rose 2.8%. Prices for fresh fruit fell 8.1% in the 12 months to October after increasing 2.2% in September. At the same time, consumer prices for women's clothing declined less in October than in September.

In Saskatchewan, the CPI increased 2.0% in the 12 months to October, after rising 1.9% in September. The increase in consumer prices was partly attributable to the telephone services index (-6.3%), which declined less on a year-over-year basis in October than in September. Prices for food purchased from stores increased 2.2% in the 12 months to October after rising 1.4% in September. Saskatchewan recorded the largest year-over-year provincial price deceleration for children's clothing.

Seasonally adjusted monthly Consumer Price Index

On a seasonally adjusted monthly basis, the CPI increased 0.2% in October, matching the gain in September.

Chart 4  Chart 4: Seasonally adjusted monthly Consumer Price Index
Seasonally adjusted monthly Consumer Price Index

In October, six major components increased while two declined. The household operations, furnishings and equipment index (+0.5%) and the health and personal care index (+0.5%) recorded the largest increases. The recreation, education and reading index (-0.3%) and the food index (-0.2%) both declined.

Telling Canada's story in numbers; #ByTheNumbers

In celebration of the country's 150th birthday, Statistics Canada is presenting snapshots from our rich statistical history.

Canada's property tax and other special charges index (which includes charges and fees related to residential property ownership) has grown at an average annual rate of 3.4% over the past 30 years.

Property taxes represent the ongoing cost of homeownership for homeowners and make up the largest source of revenue for Canadian municipalities. Property taxes represent 3.4% of total annual average household spending (basket weight based on the 2015 Survey of Household Spending).

In 2000, the property tax index decreased 0.2%, the only decline in the history of the index. This was primarily driven by a 2.2% decline in Ontario, largely attributable to a cut in the residential education tax rate.

Since 2001, the property tax index at the Canada level has increased at an average annual rate of 2.9%.

Chart 5  Chart 5: Property taxes and other special charges index, annual average, Canada, 1987 to 2016
Property taxes and other special charges index, annual average, Canada, 1987 to 2016





  Note to readers

A seasonally adjusted series is one from which seasonal movements have been eliminated. Users employing Consumer Price Index (CPI) data for indexation purposes are advised to use the unadjusted indexes. For more information on seasonal adjustment, see Seasonally adjusted data – Frequently asked questions.

Methodological change: New approach for estimating the mortgage interest cost index

The CPI measures the change in prices of consumer goods and services over time. To accurately reflect trends in the market and in consumer behaviour, Statistics Canada periodically reviews and updates the methods applied to various components of the CPI.

The release of the October 2017 CPI (published on November 17, 2017) marks the implementation of new data sources and methodological changes for the calculation of the mortgage interest cost index (MICI).

The MICI represents 3.41% of the 2015 CPI basket and is part of Shelter, one of the major CPI components.

This new approach uses administrative data to replace survey data, which reduces survey response burden while better reflecting the Canadian residential mortgage market and allowing for a simplified estimation process.

Detailed documentation describing the new MICI approach is available in the publication Prices Analytical Series (Catalogue number62F0014M).

Changes to table entitled "Inter-city indexes of price differentials of consumer goods and services": Addition of a new geographic stratum

With this release, data on inter-city indexes of price differentials of consumer goods and services, appearing in CANSIM table 326-0015, have been updated to October 2016. As well, the geographic stratum "Calgary, Alberta" has been introduced in the table, reflecting data for the all-items index and its eight major components and selected sub-groups.

Real-time CANSIM tables

Real-time CANSIM table 326-8023 will be updated on December 4. For more information, consult the document Real-time CANSIM tables.

Next release

The CPI for November will be released on December 21.

Products

The October 2017 issue of The Consumer Price Index, Vol. 96, no. 10 (Catalogue number62-001-X) is now available.

More information about the concepts and use of the Consumer Price Index (CPI) is available in The Canadian Consumer Price Index Reference Paper (Catalogue number62-553-X).

For information on the history of the CPI in Canada, consult the publication Exploring the First Century of Canada's Consumer Price Index (Catalogue number62-604-X).

Two videos, "An Overview of Canada's Consumer Price Index (CPI)" and "The Consumer Price Index and Your Experience of Price Change," are available on Statistics Canada's YouTube channel.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).

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