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Consumer Price Index, June 2018

Released: 2018-07-20

Consumer Price Index

June 2018

2.5% increase

(12-month change)

The Consumer Price Index (CPI) rose 2.5% on a year-over-year basis in June, following a 2.2% increase in May. This is the largest year-over-year increase in the CPI since February 2012.

This month's year-over-year CPI increase follows a year of gradual acceleration in consumer price inflation, from a recent low of 1.0% year over year in June 2017. This trend reflects increases in prices for gasoline and food purchased from restaurants, as well as offsetting factors such as lower price inflation for electricity and telephone services. These movements coincide with recent improvements in the economy and the labour market, as well as an increase in oil prices.

Chart 1  Chart 1: The 12-month change in the Consumer Price Index (CPI) and the services index
The 12-month change in the Consumer Price Index (CPI) and the services index

Component highlights

Seven of eight major components rose year over year. The transportation index (+6.6%) was the largest contributor to the year-over-year increase, while the household operations, furnishings and equipment index (-0.1%) was the lone major component to decline.

Chart 2  Chart 2: Consumer prices increase in seven of eight major components
Consumer prices increase in seven of eight major components

Energy costs were 12.4% higher compared with June 2017, after increasing 11.6% year over year in May. Year-over-year gains in prices for gasoline (+24.6%) and fuel oil and other fuels (+25.9%) were larger in June than in May, as sustained increases in crude oil prices and exchange rate pressures continued to impact consumer prices. Prices for durable goods rose 0.6% year over year, led by growth in the purchase of passenger vehicles index (+1.8%). This gain is attributable to lower rebates on 2019 model-year vehicles.

Year-over-year gains in the price of services were lower in June (+2.2%) than in May (+2.3%), moderating the growth in the CPI. Prices for telephone services (-8.8%) continued to decline year over year, amid a series of industry-wide price promotions. Consumers paid 8.4% less for travel tours compared with June 2017. The homeowners' replacement cost index increased less on a year-over-year basis in June (+1.4%) than in May (+2.0%).

Regional highlights

Prices rose more in six provinces in June on a year-over-year basis compared with the previous month. This growth was strongest in Prince Edward Island, where prices increased 2.9%.

The CPI in Newfoundland and Labrador rose 2.3% in June. Gasoline prices were up 16.5% in the 12 months to June after increasing 5.5% the previous month.

Chart 3  Chart 3: Consumer prices rise at a faster rate in six provinces
Consumer prices rise at a faster rate in six provinces

Seasonally adjusted monthly Consumer Price Index

On a seasonally adjusted monthly basis, the CPI rose 0.1% in June, matching the increase in May. Six of eight major components increased, while the household operations, furnishings and equipment index (-0.3%) and the recreation, education and reading index (-0.6%) both declined.

Chart 4  Chart 4: Seasonally adjusted monthly Consumer Price Index
Seasonally adjusted monthly Consumer Price Index






  Note to readers

Changes to table "Inter-city indexes of price differentials of consumer goods and services": Addition of two new geographic strata

With this release, data on inter-city indexes of price differentials of consumer goods and services, appearing in table 18-10-0003-01, have been updated to October 2017. As well, the geographic strata "Whitehorse, Yukon" and "Yellowknife, Northwest Territories" have been introduced into the table, reflecting data for the all-items index and its eight major components and selected sub-groups.

Real-time data tables

Real-time data table 18-10-0259-01 will be updated on August 7.

Next release

The Consumer Price Index for July will be released on August 17.

Products

More information about the concepts and use of the Consumer Price Index (CPI) is available in The Canadian Consumer Price Index Reference Paper (Catalogue number62-553-X).

For information on the history of the CPI in Canada, consult the publication Exploring the First Century of Canada's Consumer Price Index (Catalogue number62-604-X).

Two videos, "An Overview of Canada's Consumer Price Index (CPI)" and "The Consumer Price Index and Your Experience of Price Change," are available on Statistics Canada's YouTube channel.

Contact information

For more information, or to enquire about the concepts, methods or data quality of this release, contact us (toll-free 1-800-263-1136; 514-283-8300; STATCAN.infostats-infostats.STATCAN@canada.ca) or Media Relations (613-951-4636; STATCAN.mediahotline-ligneinfomedias.STATCAN@canada.ca).

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