Analysis
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Consumer prices rose 3.2% in the 12 months to September, led by higher prices for gasoline and food. This follows a 3.1% increase posted in August.
Energy prices advanced 12.5% during the 12 months to September, following a 13.4% increase in August. On a year-over-year basis, gasoline prices rose 22.7%, after gaining 22.8% in August. Prices for fuel oil rose 27.4% while prices for natural gas fell 4.7%.
Prices for food rose 4.3% in the 12 months to September after increasing 4.4% in August.
Excluding food and energy, the Consumer Price Index (CPI) increased 1.9% in the 12 months to September, following a 1.5% increase the month before. Larger year-over-year price increases in September were observed for the purchase of passenger vehicles, clothing and passenger vehicle insurance premiums.
12-month change: Prices increase in all major components
On a year-over-year basis, prices increased in all eight major components in September. Transportation and food continued to post the largest increases.
The cost of transportation increased 7.9% in the 12 months to September, following a 7.0% gain in August. In addition to paying more for gasoline, consumers paid more in passenger vehicle insurance premiums. Prices for air transportation and the purchase of passenger vehicles also increased.
Food prices rose 4.3% on a year-over-year basis in September. Prices for food purchased from stores advanced 4.8%, following a 5.0% increase in August. Consumers paid more for meat (+6.1%), bakery products (+7.2%) and fresh vegetables (+13.0%). Prices for food purchased from restaurants went up 3.1%.
Shelter costs rose 1.5% in the 12 months to September, following a 1.8% gain in August. In addition to higher prices for fuel oil, consumers paid 5.7% more for homeowners' home and mortgage insurance. Conversely, mortgage interest cost, which measures the change in the interest portion of payments on outstanding mortgage debt, decreased 1.8% in September. Prices for natural gas also fell.
Prices for recreation, education and reading went up 1.2% after gaining 1.3% in August. Tuition fees rose 4.2% year-over-year in September. This follows a 3.8% increase in September 2010. Prices for cablevision and satellite services also increased, while prices for video equipment fell.
Clothing and footwear prices increased for the fifth consecutive month, rising 2.4% in September. This followed a 0.6% gain in August. Prices for men's clothing rose 3.8% after increasing 1.8% in August.
Provinces: Gasoline still the main factor in all provinces
Consumer prices increased in every province in September. Higher prices for gasoline were the principal factor behind the increases in all provinces.
In Ontario, consumer prices went up 3.4% in the 12 months to September, after rising 3.1% in August. Consumers in Ontario paid 24.2% more for gasoline. Passenger vehicle insurance premiums rose, while prices for electricity fell.
Prices in Quebec increased 3.4%, matching the gain in August. Gasoline prices rose 24.9%. Consumers paid 33.6% more for fuel oil. Prices for food purchased from restaurants, meat and the purchase of passenger vehicles also increased.
In Alberta, prices advanced 2.8% in the 12 months to September, after increasing 2.9% in August. Gasoline prices rose 20.0%, while prices for electricity increased 15.8%. Alberta consumers also paid more for homeowners' home and mortgage insurance.
Prices in British Columbia went up 2.4% in the 12 months to September, following a 2.1% increase in August. Gasoline prices increased 17.3%. Consumers paid more for homeowners' home and mortgage insurance and for food purchased from restaurants.
Nova Scotia and New Brunswick recorded the largest increases in consumer prices (+4.2%), led by higher prices for gasoline, food purchased from stores and fuel oil in both provinces.
Non-seasonally adjusted monthly CPI increases
Consumer prices, before seasonal adjustment, rose 0.2% from August to September. The increase follows a 0.3% gain the month before. On a monthly basis, prices went up in four of the eight major components.
Prices for clothing and footwear advanced 4.9% in September, after posting a gain of 1.0% in August. Prices for women's clothing rose 10.5% as September marked the introduction of the new fall and winter collections. Prices for children's clothing and men's clothing also increased.
Transportation costs increased 0.8% in September, following a 0.2% increase in August. Prices for the purchase of passenger vehicles rose 1.9% from August to September after gaining 1.3% in the previous month. Consumers also paid more for air transportation. Prices for gasoline fell 0.3%.
Prices for recreation, education and reading went up 0.5% after falling 0.4% in August. Tuition fees rose 4.2% while the cost of school textbooks and supplies increased 1.5%.
The household operations, furnishings and equipment index increased 0.4% in September as the cost for financial services rose 4.8%.
The shelter index went down 0.4% in September, after increasing 0.2% in August. Electricity prices fell 3.0% on the heels of a 2.1% advance in August. The fall in electricity prices in September is largely the result of electricity prices decreasing in Alberta. Prices for homeowners' home and mortgage insurance, natural gas, and fuel oil also fell.
Food prices decreased 0.5% in September, following a 0.1% decrease in August. Prices for food purchased from stores fell 0.8% as consumers paid less for fresh vegetables (-4.7%), fresh fruit (-4.0%), and cereal products (-2.6%). Meat prices rose 0.9% in September.
At the provincial level in September, prices increased in every province except Alberta and Prince Edward Island, where prices fell 0.2%. Manitoba and Saskatchewan recorded the largest monthly increases in consumer prices (+0.7%).
Seasonally adjusted monthly CPI increases
On a seasonally adjusted monthly basis, consumer prices increased 0.3% from August to September, matching the increase recorded the month before. The transportation index advanced 1.0% after increasing 0.9% in August.
The seasonally adjusted clothing and footwear index rose 1.0% in September, following a 0.1% decline in August. The food index went up 0.2% while the shelter index fell 0.4%.
Bank of Canada's core index
The Bank of Canada's core index advanced 2.2% in the 12 months to September, the largest year-over-year gain since December 2008. The increase follows a 1.9% rise in August. Larger year-over-year price increases in September were observed for the purchase of passenger vehicles, clothing and passenger vehicle insurance premiums.
On a month-over-month basis and before seasonal adjustment, the core index went up 0.5% in September, after increasing 0.4% in August.
The seasonally adjusted monthly core index increased 0.3% in September, after rising 0.4% in August.
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