| National Index Highlights |
Twelve-month percentage change in the CPI: +3.6%
Twelve-month percentage change in the CPI excluding energy: +2.8%
Consumers across Canada faced a 3.6% average price increase between April 2000 and April 2001, for the goods and services contained in the Consumer Price Index (CPI) basket. This is up from the 12-month increase of 2.5% recorded in March 2001. April's increase is the largest observed since December 1991.
Since the 12-month percentage change in the CPI compares the index of a given month to the index of 12 months previous, a variation in last year's index affects this year's 12-month percentage change. This is especially the case this month, as the upsurge from 2.5% to 3.6% in the All-items index is due to the combination of an unusually large decline in energy prices last April, with continued increases in energy prices this April. Higher gasoline prices were the primary contributor to the upsurge.
The All-items excluding energy index increased by 2.8% in April 2001, compared to 2.3% in March 2001. The federal-provincial tax increases introduced in April for cigarettes were in large part responsible for this higher 12-month rate of increase. Price increases for the purchase of automotive vehicles also played a role, as fewer and smaller rebates were offered to consumers.
Energy prices rose, on average, by 11.6% between April 2000 and April 2001, accounting for almost a third of the All-items annual increase. This rise in the Energy index follows an annual increase of 3.6% in March. All energy components contributed to April's increase with more than half of the rise coming from a 49.9% hike in natural gas prices. Gasoline prices rose by 8.3% over the same period, after posting an annual decline of 3.2% in March. A 9.9% increase in the prices for fuel oil and a 1.5% advance in electricity prices provided the remaining upward pressure on the Energy index.
Over a quarter of the annual increase in the All-items CPI in April 2001 can be attributed to higher food prices. Most of the movement in the food index came from increased prices for fresh vegetables, beef, fresh fruit and restaurant meals. The lingering effect of bad weather conditions last winter and higher transportation costs resulted in price increases for both fresh fruit and fresh vegetables. The index for fresh vegetables rose by 17.0%, while the fresh fruit index posted its largest advance (+17.8%) since September 1991. Beef prices advanced by 18.0%, reflecting in large part tight supplies. The 2.5% increase in the index for food purchased from restaurants reflects higher operating costs.
Other commodities contributing to the 12-month increase in the All-items CPI in April 2001, were mortgage interest cost, cigarettes, telephone services and rent. Price decreases that somewhat countered theses increases were observed for air transportation, computer equipment and supplies and automotive vehicle insurance premiums.
Monthly percentage change in the CPI: +0.7%
The CPI rose by 0.7% between March and April 2001. An increase of this magnitude was last recorded in March 2000 (+0.7%), and is more than double the 0.3% registered in March 2001. Higher prices for gasoline, electricity, cigarettes and fresh fruit were the largest contributors to the rise in the CPI in April. Nonetheless, declining prices for women's clothing, automotive vehicle insurance premiums and fresh vegetables somewhat dampened the monthly increase in the index.
Gasoline prices advanced by 5.5% from March to April 2001, after recording a monthly decline of 2.3% in March. A 9.3% hike in prices in Ontario led this monthly increase, the largest since September 2000. Among the reasons for this rise were an anticipated increase in north american demand for the summer and low U.S. inventories levels.
The 5.8% increase in the electricity index for April 2001 primarily reflects the return to regular billing for BC Hydro customers, as the average customer would have exhausted the $200 credit rebate given in February. The rise in the index was moderated somewhat by a 25.7% drop in the index for Newfoundland, resulting from a one-time credit given on the April bill of Hydro customers in that province.
Between March and April 2001, cigarette prices rose by 7.7%. This increase can be explained by a combined federal-provincial tax of $4.00 per carton introduced on April 6th. Price increases ranged from 9.9% to 11.2% in the five affected provinces: Prince Edward Island, New Brunswick, Nova Scotia, Québec and Ontario. An increase of 4.1% was also observed in Manitoba due to a change in the provincial tobacco tax effective April 10th.
On average, fresh fruit prices were 7.7% higher between March and April 2001. Seasonal decreases in the availability of oranges combined with a delay in some imported crops were mostly responsible for the increase.
Prices for women's clothing were down 2.7% in April 2001, after increasing by 2.2% in March. Sale pricing was widespread in most categories of women's clothing, with all registering price declines.
The index for automotive vehicle insurance premiums declined by 1.3% between March and April 2001. This drop reflects a 2.6% decrease in rates for Ontario as prices remained unchanged in all other provinces and territories.
Prices for fresh vegetables were down 3.3% in April 2001, after posting an increase of 5.4% in March. The decrease is the result of increased supplies following an improvement in weather conditions in the U.S. southwestern growing regions.
The seasonally adjusted CPI increased by 0.3% between March 2001 and April 2001
After removing seasonal influences, the All-items CPI rose by 0.3% in April, the same increases as those registered for February and March. The contributors to the rise in April's seasonally adjusted index were increases in the indexes for Food (+0.9%), Clothing (+0.5%), Health and personal care (+0.4%), Household operations and furnishings (+0.2%), Transportation (+0.2%), Recreation, education and reading (+0.2%), and Alcoholic beverages and tobacco products (+0.2%). A decline was recorded for Shelter (-0.1%).
Special Aggregates
All-items excluding food and energy
Between April 2000 and April 2001, the index for All-items excluding food and energy rose by 2.1%. This increase is the largest since June 1997. Higher costs for mortgage interest, and prices for cigarettes and telephone services, as well as higher rents were the major contributors to the increase in the index.
The index for All-items excluding food and energy advanced by 0.4% between March and April 2001. The April 2001 increase is primarily due to price increases for cigarettes, telephone services and the purchase of automotive vehicles.
Energy
The Energy index advanced by 11.6% between April 2000 and April 2001, which is more than three times the annual increase of 3.6% registered in March. All components of the index recorded price increases with about 90% of the increase coming from higher prices for natural gas (+49.9%) and gasoline (+8.3%). The increase for natural gas is the highest 12-month increase ever recorded for this commodity.
Between March and April 2001, the Energy index rose by 3.6%, following a 1.3% monthly increase in March. Higher prices for gasoline (+5.5%) and electricity (+5.8%) are the main reasons for the increase in the index. Moderating the rise was a 1.5% fall in natural gas prices and a 2.8% decrease in prices of fuel oil.
Goods and Services
Since April 2000, prices of Goods have risen 4.5%, the largest increase since September 1991. A 7.2% increase in the non-durable goods index was the main contributor to this rise. Higher prices for natural gas, gasoline, cigarettes, fresh vegetables and beef had the greatest impact on the price movement of non-durable goods. The index for semi-durable goods moved up by 1.6%. Contributing to this advance were price increases for women's clothing, reading material and other printed material, and men's clothing. The 0.3% decline in the index for durable goods was mainly influenced by price decreases for computer equipment and supplies and video equipment. Higher prices for the purchase of automotive vehicles and furniture counterbalanced part of the downward movement in the durable goods index.
In April 2001, the Services index recorded an annual increase of 2.5%. The main contributors to this increase were mortgage interest cost, telephone services, food purchased from restaurants and travel services. Lower air transportation prices slightly offset the 12-month increase in the Services index.
The Goods index rose by 1.1% between March and April 2001. This rise was mostly due to a 1.7% increase in the non-durable goods index, reflecting higher prices for gasoline, electricity, cigarettes and fresh fruits. The durable goods index moved up by 0.5%, influenced mainly by price increases for the purchase of automotive vehicles and furniture. The semi-durable goods index dropped by 1.2%, mostly under the influence of lower prices for women's and children's clothing.
The Services index increased by 0.3% between March and April 2001. This upward movement was due largely to price increases for telephone services, health care services and air transportation. A drop in the index for automotive vehicle insurance premiums moderated the increase.
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