| National Index Highlights |
Twelve-month percentage change in the CPI: +3.9%
Twelve-month percentage change in the CPI excluding energy: +2.7%
Between May 2000 and May 2001, Canadian consumers faced a 3.9% average increase in the prices of the goods and services contained in the Consumer Price Index (CPI) basket. This surpassed April's rate of 3.6% to become the largest increase since November 1991.
Once again, energy prices were a driving force behind these gains, accounting
for more than a third of the All-items annual increase. On the heels
of an 11.6% increase in April, energy prices continued to gain ground
in May, climbing 16.0% over their May 2000 level. All energy components
were up on an annual basis, but most of the upward price pressure was
the result of a 67.4% record jump in natural gas prices and a 12.0%
rise in gasoline prices. Twelve-month advances in the indexes for natural
gas ranged between 25.8% in Saskatchewan and 85.8% in Alberta.
When the impact of the energy component is excluded, the increase in
prices is somewhat diminished. The All-items excluding energy index
increased by 2.7% in May 2001. This advance is smaller than April’s
2.8% increase, but still above the 2.3% rise registered in March.
Higher food prices were also central to the All-items increase, accounting for close to a quarter of the change. Increase in beef prices, combined with higher prices for fresh fruit, restaurant meals and fresh vegetables helped bring about a 5.2% annual increase in the food index. Beef prices stood 19.2% above the May 2000 level reflecting ongoing supply weakness. Inclement growing weather is among the factors contributing to an 18.7% climb in fresh fruit prices. Adverse weather also had an impact on fresh vegetable prices, which, combined with higher production and transportation costs, helped bring about an 11.8% rise.
Cigarette prices, mortgage interest cost, telephone services prices and rent also pushed up the All-items CPI, but were somewhat offset by lower prices for air transportation, and computer equipment and supplies.
Monthly percentage change in the CPI: +0.9%
On a monthly basis, the CPI rose by 0.9% between April and May 2001, surpassing April's rate of 0.7% and becoming the largest monthly increase since January 1991. Higher prices for gasoline, natural gas, traveller accommodation, cigarettes, fresh fruit and homeowner's maintenance and repairs boosted the index, while lower prices for women’s and men’s clothing partly counterbalanced these effects. Much of the upward price pressure on the All-items index stemmed from a 3.6% monthly increase in Alberta.
Gasoline prices advanced by 5.4% between April and May, on the heels
of April’s 5.5% increase. Canadian drivers are facing higher gasoline
prices due to increasing North American demand as we begin the peak
summer season. The impact was felt the most in the Prairies with increases
over 10.0% in each of the provinces.
Natural gas prices climbed 14.6% in May, accounting for more than a quarter of the All-items monthly increase. The majority of the advance came from Alberta where the discontinuation of the provincial government monthly credit resulted in a 121.7% jump in prices.
Travellers faced price increases of 7.3% for traveller accommodation as many hotels introduced their summer rates.
The impact of higher taxes on cigarettes continued into May with a 3.3% increase compared to April. On April 6th, a combined federal-provincial tax of $4.00 per carton was introduced in Prince Edward Island, Nova Scotia, New Brunswick, Québec and Ontario. An increase was also observed in Manitoba due to a change in the provincial tobacco tax effective April 10th. While the bulk of these tax increases were integrated in April, some lingering effects remained in May as the tax was introduced partway through April.
After having increased by 7.7% in April, fresh fruit prices gained
a further 4.5% in May, largely on the strength of prices for oranges
and for the other fresh fruit category. Orange prices increased 14.5%
mainly in response to the season's end of certain orange crops and smaller
than expected incoming crops. The index for the other fresh fruit category
rose by 2.8% between April and May 2001, due to lower production.
Prices for the homeowner's maintenance and repairs category increased 2.1% between April and May, primarily pushed up by higher material prices. The upward price pressure was felt the most in Manitoba (+5.4%).
After falling 2.7% in April, women's clothing prices continued to drop in May (-4.0%), due to a proliferation of seasonal sales in most categories. Prices for men’s clothing fell by 0.9%. Seasonal sales for men’s clothing were not as widespread, nor as important as for women’s clothing.
The seasonally adjusted CPI increased by 0.5% between April 2001 and May 2001
After removing seasonal influences, the All-items CPI rose by 0.5% between
April and May 2001. The contributors to the rise in May’s seasonally
adjusted index were increases in the indexes for Food (+0.5%), Shelter
(+1.2%), Health and personal care (+0.4%), Household operations and
furnishings (+0.2%), Transportation (+0.6%), and Alcoholic beverages
and tobacco products (+1.4%). Partly offsetting these increases was
a decline in Clothing (-0.5%), while the seasonally adjusted index for
Recreation, education and reading remained stable.
Special Aggregates
All-items excluding food and energy
Between May 2000 and May 2001, the index for All-items excluding food and energy rose by 2.1%, matching April's rate. May's advance can largely be attributed to the higher costs of cigarettes, mortgage interest and telephone services, as well as higher rents.
On a monthly basis, the All-items excluding food and energy index advanced by 0.4% between April and May 2001, matching the previous month's increase. Rising prices for traveller accommodation, cigarettes, as well as homeowner's maintenance and repairs overshadowed lower women's clothing prices.
Energy
The Energy index advanced by 16.0% between May 2000 and May 2001, up
from 11.6% in April and over four times the annual increase of 3.6%
registered in March. All components of the index gained ground, but
the increases were primarily due to the record gain in natural gas prices
(+67.4%), and a 12.0% rise in gasoline prices.
Between April and May 2001, the Energy index rose by 5.2%, the largest monthly
increase since June 1983. As with the annual increase, gasoline prices
(+5.4%) and natural gas prices (+14.6%) were responsible for the bulk
of the increase. Electricity prices rose by 0.6%, while those of fuel
oil prices decreased by 1.0%.
Goods and Services
As a group, prices for goods rose by 5.3% in May 2001 compared to May
2000, outpacing April's rate of 4.5%. The non-durable goods category
(+8.7%), boosted by higher prices for natural gas, gasoline, cigarettes,
beef and fresh fruit was central to these increases. The impact of semi-durable
goods was less pronounced, with prices edging up by 0.6% compared to
May 2000. Higher prices for reading material and other printed material,
and women's coats and jackets were partly offset by lower prices for
women's suits, skirts and pants as well as women's blouses, sweaters
and other tops. In contrast to the other two categories, prices for
durable goods were lower than in May 2000 (-0.2%), largely because of
falling prices for computer equipment and supplies, video equipment,
and household appliances. These effects were partly offset by rising
prices for automotive vehicles, furniture, and automotive vehicle parts
and supplies.
Prices for services grew, on average, by 2.5% between May 2000 and May 2001, reflecting the higher cost of mortgage interest, food purchased from restaurants, telephone services and rent. These increases were partly offset by a decrease in air transportation prices.
On a monthly basis, the Goods index rose by 1.3% between April and May. The non-durable sector led the increase (+2.3%), while prices for durable goods edged up by 0.3% and semi-durable goods prices slipped by 1.4%. Non-durable goods prices moved up on the strength of gasoline, natural gas and cigarette prices with lower tomato prices slightly offsetting these advances. The durable goods index advanced largely due to higher prices for recreational vehicles, other furniture, jewellery, house and yard tools, and other recreational equipment and services. These effects were dampened by lower prices for computer equipment and supplies, and photographic equipment. The price declines in the semi-durable goods category were widespread among women's clothing, bedding and other textiles and men's clothing but were somewhat offset by increases for children's clothing.
The Services index increased by 0.4% between April and May 2001. Higher prices for traveller accommodation, homeowner's maintenance and repairs, and the use of recreational facilities and services pushed up the index.
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