Inflation At 1.7%, Holy Cow!

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Canajun Finances

My personal views and rants on home finances with a Canadian Perspective

Inflation At 1.7%, Holy Cow!

Posted on 09/20/2007 14:33:00 | Link | Post Comment

Weaker Gasoline prices is the reason given, but I am still stymied by the fact that inflation is dropping even with gas prices at $1.00 per liter again.

Now inflation is the measure of how much things have risen in price, not that things are expensive in the first place, so I guess this makes sense, but more expensive fuel should be rippling through prices in the economy, however that does not seem to be happening?

Here is the break down on things for you who love numbers.

Consumer Price Index and major components

(2002=100)

Relative importance¹

August 2007

July 2007

August 2006

July to August 2007

August 2006 to August 2007

Unadjusted

% change

All-items

100.00²

111.7

112.0

109.8

-0.3

1.7

Food

17.04

111.8

112.3

109.2

-0.4

2.4

Shelter

26.62

117.6

117.0

113.5

0.5

3.6

Household operations and furnishings

11.10

103.5

103.2

101.7

0.3

1.8

Clothing and footwear

5.36

95.4

94.6

95.4

0.8

0.0

Transportation

19.88

116.3

118.5

118.0

-1.9

-1.4

Health and personal care

4.73

107.6

107.5

105.5

0.1

2.0

Recreation, education and reading

12.20

102.9

103.0

101.2

-0.1

1.7

Alcoholic beverages and tobacco products

3.07

126.1

126.0

121.8

0.1

3.5

All-items (1992=100)

132.9

133.3

130.7

-0.3

1.7

Special aggregates

Goods

48.78

107.7

108.6

108.1

-0.8

-0.4

Services

51.22

115.6

115.3

111.4

0.3

3.8

All-items excluding food and energy

73.57

109.2

109.1

106.8

0.1

2.2

Energy

9.38

136.4

139.6

141.7

-2.3

-3.7

Core CPI³

82.71

110.1

110.0

107.7

0.1

2.2

1.	2005 CPI basket weights at April 2007 prices, Canada - Effective May 2007. Detailed weights are available under the Documentation section of survey 2301 (http://www.statcan.ca/english/sdds/index.htm).
2.	Figures may not add up to 100% due to rounding.
3.	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).