Highlights:

Consumer prices fell 0.9% in the 12 months to July 2009, following the 0.3% decrease posted in June. On an unadjusted monthly basis, consumer prices fell 0.3% from June to July, after increasing 0.3% from May to June.

All-items Consumer Price Index (CPI):

1. The decline in the 12-month change in the CPI in July was due primarily to a large drop in energy (-23.4%), which came mainly from the fall in prices for gasoline (-28.3%).
2. A 12-month decline of 2.0% in costs for shelter also put downward pressure on the 12-month change in the CPI.
3. Upward pressure on the 12-month change came primarily from higher food prices (+5.0%).
4. The month-to-month decline in the CPI from June to July came primarily from a substantial drop in gasoline and natural gas prices.

Main contributors to the 12-month change in the CPI:

Main upward contributors:

1. Food purchased from restaurants (+3.4%)
2. Passenger vehicle insurance premiums (+5.1%)
3. Other household goods and services (+7.3%)
4. Meat (+5.6%)
5. Homeowners’ maintenance and repairs (+7.8%)

Main downward contributors:

1. Gasoline (-28.3%)
2. Natural gas (-36.1%)
3. Purchase of passenger vehicles (-4.3%)
4. Fuel oil and other fuels (-40.6%)
5. Homeowner’s replacement costs (-3.7%)

Main contributors to the monthly change in the CPI, not seasonally adjusted:

Main upward contributors:

1. Traveller accommodation (+5.0%)
2. Men’s clothing (+2.1%)
3. Homeowners’ maintenance and repairs (+1.3%)

Main downward contributors:

1. Gasoline (-4.1%)
2. Natural gas (-8.9%)
3. Purchase of passenger vehicles (-1.4%)
4. Mortgage interest cost (-0.7%)