Highlights

In April 2005, consumers paid 2.4% more than in April 2004 for the goods and services included in the Consumer Price Index (CPI) basket. This increase follows a 12-month rise of 2.3% in March.

The CPI excluding energy was up 1.6% between April 2004 and April 2005. This 12-month change for this index was slightly lower than the 1.7% increase of March 2005.

The All-items index excluding the eight volatile components identified by the Bank of Canada rose by 1.7% between April 2004 and April 2005, a decrease compared with the 1.9% increase of March.

Percentage Change from the Same Month of the Previous Year, Canada

Between March and April, the All-items index rose by 0.3%, after increasing 0.6% in March. A drop in prices for women’s clothing, which usually occurs in April accounted for most of the decrease in the monthly variation.

The All-items index excluding energy as well as the All-items index excluding the eight volatile components identified by the Bank of Canada remained unchanged in April.

Twelve-month percentage change in the CPI: +2.4%
Twelve-month percentage change in the CPI excluding energy: +1.6%

In April, the CPI registered a 2.4% increase as compared with April 2004. Upward pressure was exerted primarily by gasoline prices, homeowners’ replacement cost, restaurant meals, fuel oil and property taxes.

Moderating these increases were lower prices for computer equipment and supplies, women’s clothing, and traveller accommodation.

On average, gasoline prices in April 2005 were 15.3% higher than in April 2004. Residents of Manitoba experienced the highest increases (+23.9%), while those of Prince Edward Island saw the lowest (+11.6%).

Homeowners’ replacement cost, which represents the worn out structural portion of housing and is estimated using new housing prices (excluding land), rose 5.8% over April 2004, a 12-month increase identical to that of March. All regions reported increases which ranged from 0.8% to 8.7%.

Consumers observed a 3.1% increase in the cost of restaurant meals between April 2004 and April 2005. This increase can be explained by several specials offered last year on meals purchased from fast-food and take-out restaurants as well as an increase in meals purchased from table-service restaurants in April of this year.

Fuel oil prices jumped an average of 31.6% between April 2004 and April 2005. Increases occurred in all provinces, ranging from 27.6% in Ontario to 38.6% in Prince Edward Island.

Property tax increases reflected in the CPI in October 2004 (+4.3%) also played a large part in the 12-month rise in the All-items index.

A number of factors exerted a moderating effect on the 12-month change in the All-items index. These included the index for computer equipment and supplies, which dropped by 20.1% compared with April 2004. Since the introduction of this commodity in December 1994, the index has dropped from 100.0 to 14.7 in April 2005.

Prices for women’s clothing were down 2.9% in April after posting a 12-month increase of 1.4% in March. An increase in the number of specials offered by the retailers in April pushed down the 12-month movement.

The index for traveller accommodation was down 5.1% compared with April 2004. All provinces posted decreases, ranging from 0.6% in Saskatchewan to 8.4% in Ontario.

Monthly percentage change in the CPI: +0.3%
Monthly percentage change in the CPI excluding energy: 0.0%

Between March and April, the CPI rose by 0.3%, from a level of 126.5 to 126.9 (1992=100). Higher prices for gasoline, electricity and fresh vegetables accounted for most of this increase. Lower prices for women’s clothing, the purchase and leasing of automotive vehicles, and natural gas however exerted a mitigating effect.

Mirroring the March increase, gasoline prices were up 5.2% in April. Consumers observed increases ranging from 3.1% in Quebec to 9.6% in British Columbia.

Higher electricity prices, especially in Ontario (+6.6%), pushed up the electricity index by 2.8%. Saskatchewan was the only province that recorded a decrease in prices. Higher electricity prices in Ontario came into effect on April 1, 2005, when the Ontario Energy Board approved a rate increase.

Fresh vegetable prices were up 5.5% in April. Poor weather conditions for harvests of “other fresh vegetables” (+9.2%) and lettuce (+32.9%) were the main reason for this increase. In contrast, tomato prices were down (-18.4%) due to availability of products from domestic greenhouses.

Among the factors influencing the decrease in the movement of the All-items index between March and April 2005, the most significant were prices for women’s clothing. Following a 6.0% increase in March 2005, prices for women’s clothing were down 6.8% in April, due to many specials, typically offered by retailers in this month.

Increased financial incentives offered in April by some automotive vehicle manufacturers resulted in a monthly decrease of 0.6% in prices for the purchase and leasing of automotive vehicles.

Natural gas prices were down 3.8% in April under the influence of decreases in Ontario (-12.9%), although Alberta (+15.9%) and Quebec (+2.1%) posted increases. Prices in the other provinces remained stable.

The seasonally adjusted CPI rose 0.3% between March and April

Seasonally adjusted, the CPI was up 0.3% between March 2005 and April 2005.

The indexes for transportation (+0.8%), food (+0.9%), shelter (+0.3%), recreation, education and reading (+0.2%), health and personal care (+0.3%), as well as alcoholic beverages and tobacco products (+0.1%) pushed up the seasonally adjusted All-items index.

The seasonally adjusted indexes for household operations and furnishings (-0.2%), and clothing and footwear (-1.6%) exerted downward pressure.

Special aggregates

All-items index excluding the eight most volatile components (Bank of Canada definition)

The All-items index excluding the eight volatile components identified by the Bank of Canada rose by 1.7% between April 2004 and April 2005. The main contributors to this increase were homeowners’ replacement cost (+5.8%), restaurant meals (+3.1%), and property taxes (+4.3%). The increase was partially offset by lower prices for computer equipment and supplies (-20.1%), women’s clothing (-2.9%) and traveller accommodation (-5.1%).

From March to April 2005, the All-items index excluding the eight volatile components identified by the Bank of Canada remained unchanged. Lower prices for women’s clothing (-6.8%) were offset by higher prices for electricity (+2.8%), bread, rolls and buns (+4.6%), and restaurant meals (+0.5%).

Energy

The energy index climbed 10.7% between April 2004 and April 2005, mainly as a result of higher gasoline prices (+15.3%). Higher prices for fuel oil (+31.6%), electricity (+2.9%) and natural gas (+2.8%), as well as for fuel, parts and supplies for recreational vehicles (+9.4%), also contributed to pushing up the energy index.

On a monthly basis, the energy index rose 3.2% mainly owing to higher gasoline prices (+5.2%). Prices for electricity (+2.8%), fuel oil (+2.2%), and fuel, parts and supplies for recreational vehicles (+2.6%) also served to push the index up. Only prices for natural gas (-3.8%) exerted a dampening effect on this increase.

Goods and services

Prices in the goods sector rose 2.6% between April 2004 and April 2005.
This increase can be explained solely by the rise in prices for non-durable goods (+5.5%) since prices for durable goods (-1.5%) and semi-durable goods (-0.6%) were down.

In April, the strongest upward pressure on the index for non-durable goods came once again from gasoline prices, which shot up 15.3% as compared with April 2004. Higher prices for fuel oil (+31.6%), cigarettes (+3.6%) and electricity (+2.9%) were also factors. The effect of these price increases was slightly attenuated by a reduction in fresh fruit prices (-2.9%). The 0.6% drop in the index for semi-durable goods could be attributed mostly to lower prices for women’s clothing (-2.9%). The durable goods index was down 1.5%, largely as a result of plunging prices for computer equipment and supplies (-20.1%).

The services index rose 2.2% from April of last year. Increases in homeowners’ replacement cost (+5.8%), restaurant meals (+3.1%) and property taxes (+4.3%) were the main factors behind this increase. Lower prices for traveller accommodation (-5.1%) and travel tours (-1.9%) accounted for most of the downward pressure exerted.

The goods index rose 0.3% between March 2005 and April 2005. The increase in the indexes for non-durable goods (+1.5%) accounted for all of this increase since those for semi-durable goods (-2.5%) and durable goods (-0.6%) were down.

Between March 2005 and April 2005, the cost of services increased by 0.2%. The increase in prices for restaurant meals (+0.5%) and “other health services” (+8.5%) was the main reason behind this rise.