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Consumer Price Index (August 2010)

Consumer Price Index (August 2010)

Consumer prices rose 1.7% in the 12 months to August, following a 1.8% increase in July.

Overall, energy prices rose 5.0% between August 2009 and August 2010, following a 7.9% increase during the 12-month period to July. Excluding energy, the Consumer Price Index (CPI) was up 1.4% in August.

Within the energy price index, prices for electricity rose 7.7% in August compared with the same month a year earlier.

Higher consumer prices were also recorded in August for homeowner's replacement costs (+5.5%), passenger vehicle insurance premiums (+5.1%) and food purchased from restaurants (+2.5%).

Seasonally adjusted monthly CPI increases

On a seasonally adjusted monthly basis, consumer prices rose 0.1% in August, following a 0.6% increase in July. The food index was up 0.3%, while the health and personal care index rose 0.7%. The transportation index fell 0.3%.

12-month change: Seven of the eight CPI major components rise

Prices increased in seven of the eight major components of the CPI in the 12 months to August; the only exception was clothing and footwear.

Shelter costs rose 2.4% in August compared with the same month last year. In addition to paying higher prices for electricity and homeowner's replacement costs, consumers also paid more for rent and natural gas.

The mortgage interest cost index, which measures the change in the interest portion of payments on outstanding mortgage debt, declined 3.8% in August, following a 4.2% decrease in July.

Transportation costs went up 2.0% in the 12 months to August after rising 2.7% in July. As well as paying higher prices for passenger vehicle insurance premiums, consumers paid 2.2% more for the purchase of passenger vehicles in August. Gasoline prices rose 1.9% during the 12-month period to August, after posting a 4.8% increase in July.

Food prices advanced 1.6%, after increasing 1.1% in July. In August, higher prices were recorded for both food purchased from restaurants and food purchased from stores. Prices rose for dairy products and eggs, sugar and confectionery, bakery and cereal products, non-alcoholic beverages, and vegetables and vegetable preparations.

Prices in the household operations, furnishings and equipment component were up 1.9% in August compared with the same month last year. Higher prices were recorded for telephone services, child care and domestic services, as well as pet food and supplies. Prices for furniture, household textiles and household appliances fell.

In the health and personal care component, prices rose 3.5%.

Prices in the recreation, education and reading component rose 0.6%. Consumers paid more for cablevision and satellite services as well as for the use of recreational facilities and services. Prices for home entertainment equipment, parts and services, and computer equipment and supplies fell.

Consumers paid 2.2% less for clothing and footwear in August than they did a year earlier. Lower prices were recorded for women's and children's clothing. Prices for women's footwear also declined in August.

12-month change: Consumer prices increase in all provinces

Consumer prices increased in all provinces in the 12 months to August. Ontario recorded the largest year-over-year increase.

Consumer prices rose 2.9% in Ontario between August 2009 and August 2010, matching the increase in July. Prices for electricity, passenger vehicle insurance premiums, and homeowner's replacement costs went up. As well, Ontarians paid 3.8% more for gasoline.

Prices in British Columbia rose 1.5% during the 12-month period to August, after a 2.0% increase in July. In August, prices for food purchased from restaurants increased 6.7% and gasoline prices advanced 6.5%. Homeowner's replacement costs also went up.

In Quebec, prices increased 0.6% in the 12 months to August. Higher prices were recorded for telephone services, passenger vehicle insurance premiums, child care and domestic services, as well as the purchase of passenger vehicles.

Prices increased 2.4% in Newfoundland and Labrador. Upward price movements were recorded for electricity, meat, food purchased from restaurants, and the purchase of passenger vehicles.

12-month change in the Bank of Canada's core index

The Bank of Canada's core index advanced 1.6% in the 12 months to August, matching the rate of growth recorded in July.

The seasonally adjusted monthly core index posted no change in August, following a 0.1% increase in July.

About the author

Québec Landlords Association (1)

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