Consumer Price Index at 3.4% for July
All I can say is “Uh Oh”, with the CPI numbers for July
being released by Stats Canada.
July saw the highest 12-month increase since March 2003. A climb in gasoline prices was the primary source of higher consumer prices in July. The 12-month variation in the Consumer Price Index (CPI) and the gasoline price index have been increasing at a faster pace over the past four months.
Inflation without gas prices included in it, is at 2.1%, which isn’t as bad, but it is still startling to see these numbers jumping up like this.
On Going Consumer Price Index Graph
This means other prices are going up but not as dramatically, but this is very worrying and I wonder what the Bank of Canada may do about this? Gas prices seem to have plateau’ed for now, but what is going to happen this fall?
More information after the BIG table 
| Consumer Price Index and major components |
| (2002=100) |
|
Relative importance1 |
July 2008 |
June 2008 |
July 2007 |
June to July 2008 |
July 2007 to July 2008 |
|
|
Unadjusted |
|
|
|
|
|
% change |
| All-items |
100.002 |
115.8 |
115.4 |
112.0 |
0.3 |
3.4 |
| Food |
17.04 |
116.5 |
115.8 |
112.3 |
0.6 |
3.7 |
| Shelter |
26.62 |
123.3 |
122.3 |
117.0 |
0.8 |
5.4 |
| Household operations and furnishings |
11.10 |
104.4 |
104.3 |
103.2 |
0.1 |
1.2 |
| Clothing and footwear |
5.36 |
93.3 |
92.5 |
94.6 |
0.9 |
-1.4 |
| Transportation |
19.88 |
125.7 |
125.8 |
118.5 |
-0.1 |
6.1 |
| Health and personal care |
4.73 |
108.5 |
108.7 |
107.5 |
-0.2 |
0.9 |
| Recreation, education and reading |
12.20 |
103.2 |
102.9 |
103.0 |
0.3 |
0.2 |
| Alcoholic beverages and tobacco products |
3.07 |
127.6 |
127.7 |
126.0 |
-0.1 |
1.3 |
| All-items (1992=100) |
|
137.8 |
137.3 |
133.3 |
0.4 |
3.4 |
| Special aggregates |
|
|
|
|
|
|
| Goods |
48.78 |
112.1 |
111.6 |
108.6 |
0.4 |
3.2 |
| Services |
51.22 |
119.4 |
119.1 |
115.3 |
0.3 |
3.6 |
| All-items excluding food and energy |
73.57 |
110.4 |
110.3 |
109.1 |
0.1 |
1.2 |
| Energy |
9.38 |
169.1 |
165.3 |
139.6 |
2.3 |
21.1 |
| Core CPI3 |
82.71 |
111.7 |
111.6 |
110.0 |
0.1 |
1.5 |
| 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.ca/english/sdds/index.htm). |
| 2. |
Figures may not add to 100% due to rounding. |
| 3. |
The measure of 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 Core CPI, please consult the Bank of Canada website (www.bankofcanada.ca/en/inflation/index.htm). | |
Leading Indicators Remain Flat
The composite leading indicators remained unchanged for another month, for July. This is the second straight month this is happening, but the actual results are quite mixed. The Housing Index seems to be the biggest drop and is the heaviest anchor keeping the index from rising (which is a good thing, I think), and New Orders in manufacturing is up too (i.e. people or companies are buying more).
