Consumer Price Index

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Consumer prices rose 2.4% in the 12 months to December, following the 2.0% increase posted in November. The 0.4 percentage point gain was mainly a result of higher gasoline prices.

Between December 2009 and December 2010, gasoline prices increased 13.0%, after advancing 7.2% in the 12 months to November. Excluding gasoline, the Consumer Price Index (CPI) rose 1.8% in December, identical to the increase recorded in November.

In addition to paying more for gasoline, consumers paid 6.2% more for electricity and 9.2% more for natural gas in December. Overall, energy prices rose 10.5% during the 12 months to December.

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

On a seasonally adjusted monthly basis, consumer prices rose 0.3% from November to December, after increasing 0.2% between October and November. The transportation index, which includes gasoline, advanced 0.4%, while the shelter index increased 0.2% and the food index was up 0.3%. Increases were also recorded for the clothing and footwear index, the recreation, education and reading index and the health and personal care index.

12-month change: Increase in seven of the eight major components

The largest increase occurred in the transportation component, where prices rose 4.9% in the 12 months to December, after posting an increase of 4.6% in November.

In addition to December's higher gasoline prices, consumers paid 4.3% more for passenger vehicle insurance premiums and 1.5% more for the purchase of passenger vehicles.

Shelter costs rose 2.7% in December, following a 2.6% rise in the 12 months to November. In addition to higher prices for electricity and natural gas, homeowners' replacement cost increased 4.3%.

However, the mortgage interest cost index, which measures the change in the interest portion of payments on outstanding mortgage debt, declined 2.5% in the 12 months to December, after falling 2.7% in November.

Food prices rose 1.7% in December compared with the same month in 2009, following a 1.5% increase in November. Prices for food purchased from restaurants increased 2.4% in December. Consumers also paid more for meat as well as sugar and confectionary.

Prices for household operations, furnishings and equipment increased 1.7% between December 2009 and December 2010, on the heels of a 0.9% increase in November. Within this component, prices rose for telephone services and child care.

The recreation, education and reading price index went up 1.1% in December, after increasing 0.6% in November. Prices for cablevision and satellite services rose 5.4%. Prices for the use of recreational facilities and services also increased, while prices for computer equipment and supplies declined.

The health and personal care index increased 2.3% in December compared with a 2.2% increase in November.

Prices for clothing and footwear declined 2.0% in December, following a 3.2% decrease in November. Prices for women's clothing fell 5.3%.

The provinces

Consumer prices increased in every province between December 2009 and December 2010. In all provinces except Saskatchewan, prices rose at a faster rate on a year-over-year basis than they did in November.

In every province except Manitoba, the main factor behind the increase in consumer prices was gasoline. Drivers faced double-digit increases in six provinces: Nova Scotia, Quebec, Ontario, Saskatchewan, Alberta and British Columbia.

Prices in Ontario rose 3.3% in the 12 months to December, after increasing 3.0% in November. Gasoline prices in Ontario rose 16.0% in December, following a 10.6% advance in November. Electricity prices, passenger vehicle insurance premiums, and homeowners' replacement cost also increased.

In Quebec, consumer prices increased 1.6% on the heels of a 1.1% rise in November. Prices for gasoline increased 13.8% in December, after rising 9.0% in November. A rise in passenger vehicle insurance premiums was also recorded.

Prices in British Columbia increased 2.4% after rising 2.2% in November. Gasoline prices were up 10.6%, following the 6.9% increase posted in November. Consumers in British Columbia also paid more for food purchased from restaurants.

In Alberta, prices rose 0.8%, following a 0.1% increase in November. Gasoline prices in Alberta rose 10.2% in December, after increasing 0.3% in November. Prices for homeowners' home and mortgage insurance were also up.

Bank of Canada's core index

The Bank of Canada's core index advanced 1.5% in the 12 months to December, following a 1.4% rise in November.

The seasonally adjusted monthly core index rose 0.2% from November to December after holding steady the previous month.

For a more detailed analysis, including an annual review of the 2010 CPI, consult the publication The Consumer Price Index.

Available on CANSIM: tables 326-0009, 326-0012, 326-0015 and 326-0020 to 326-0022.

Definitions, data sources and methods: survey number 2301.

More information about the concepts and use of the Consumer Price Index (CPI) are also available online in Your Guide to The Consumer Price Index (62-557-X, free) from the Key resource module of our website under Publications.

The December 2010 issue of the Consumer Price Index, Vol. 89, no. 12 (62-001-X, free), is now available from the Key resource module of our website under Publications. A paper copy is also available ($12/$111). A more detailed analysis of the CPI is available in this publication. See How to order products.

The January Consumer Price Index will be released on February 18.

For more information, or to enquire about the concepts, methods or data quality of this release, contact the Dissemination Unit (toll-free 1-866-230-2248; 613-951-9606; fax: 613-951-2848; cpd-info-dpc@statcan.gc.ca), Consumer Prices Division.