National Index Highlights |
Twelve-month percentage change in the CPI: +3.3%
Twelve-month percentage change in the CPI excluding energy: +2.5%
Between June 2000 and June 2001, the rate of increase for the prices of goods and services included in the Consumer Price Index (CPI) basket slowed to 3.3%. This 12-month increase is smaller than the rates of 3.9% observed in May and 3.6% recorded in April.
In spite of a significant drop in energy prices between May and June 2001 (-1.3%), the 12-month increase in the All-items CPI is still substantially influenced by energy prices, as they accounted for over a quarter of the increase. Energy prices advanced by 10.4% compared to June 2000, below the rate of 16.0% in May and 11.6% in April. The rate of increase in energy prices slowed down in June compared to May mostly under the influence of gasoline prices. The 12-month percentage change in the gasoline index dropped from 12.0% in May to 0.9% in June, as we are comparing a period of increasing prices between May 2000 and June 2000 to a period of decreasing prices between May 2001 and June 2001. Natural gas prices (+62.0%) were at the forefront of June's increase, followed by electricity prices (+4.8%). The upward price pressure on the electricity index was concentrated in Ontario (+9.1%) and in Alberta (+21.3%).
When the impact of the energy component is excluded, the CPI increased by 2.5% over the twelve months ending in June 2001. While this advance was smaller than those in May (+2.7%) and April (+2.8%), it was larger than the 2.3% rise registered in March.
Higher food prices were also central to the All-items increase, contributing to over a quarter of the change. Price increases for meat, restaurant meals and fresh fruit helped bring about a 4.6% annual increase in the food index. Meat prices stood 10.0% higher than in June 2000, reflecting widespread price increases. Among the increases, the impact of beef prices was greatest. Beef prices have climbed steadily throughout 2001, leaving them 17.9% higher than in June 2000. Prices for food purchased from restaurants were up by 3.1%, reflecting higher operating costs. The lingering effect of bad weather conditions last winter and higher transportation costs resulted in a 14.3% price increase for fresh fruit.
Higher cigarette prices, mortgage interest cost and telephone service charges were also important factors behind the advance in the All-items CPI. These advances were somewhat tempered by lower prices for computer equipment and supplies, and traveller accommodation.
Monthly percentage change in the CPI: +0.1%
The CPI rose by 0.1% between May and June 2001, the fifth consecutive month of increases. The greatest upward pressure on June's index stemmed from rising prices for electricity, traveller accommodation, air transportation, women's clothing and meals purchased from restaurants. Partially offsetting these effects, were lower prices for gasoline and men's clothing.
Electricity prices rose by 2.6%, mainly due to higher prices in Ontario. The Ontario Energy Board approved a province-wide wholesale price increase. In several cases, this increase translated into higher prices for consumers, leaving overall electricity prices 7.7% higher in June when compared to May.
Travellers faced a 4.3% rise in their accommodation costs in June, on the heels of May's 7.3% advance. This largely reflects the robust demand associated with the summer tourist season. The largest impact on the Canada index came from the price increases of 5.2% and 7.3% experienced by residents of Québec and British Columbia, respectively.
Prices for air transportation climbed 4.7% between May and June, the result of overall increases in all but the southern routes. Higher transatlantic airfares had the largest impact on the index, reflecting high season travel. Prices for domestic flights were pushed up by the introduction of a fuel surcharge to compensate for higher fuel costs and an increase in NAV CANADA service fees by air carriers.
Prices for women's clothing rose by 1.4% between May and June as many items returned to regular price, ending specials that were in place last month.
The cost of food purchased from restaurants rose by 0.5%, mostly boosted by higher prices in table service restaurants, which increased by 0.8%. Prices were pushed up as restaurants faced higher operating costs.
Between May and June, gasoline prices dropped 4.3% amid signs of expanding inventories. This drop is the largest monthly decline since April 2000.
Prices for men's clothing dropped 1.9% in June, reflecting widespread price decreases. Seasonal sale pricing was responsible for the bulk of the declines and was evident across most of the country. Declines over the past three months have helped keep prices slightly below (-0.5%) their June 2000 levels.
The seasonally adjusted CPI unchanged between May 2001 and June 2001
After removing seasonal influences, the All-items CPI remained stable between May and June 2001. Higher seasonally adjusted indexes for the Shelter (+0.4%), Health and personal care (+0.5%) and Household operations and furnishings (+0.2%) categories pushed up the All-items index. These effects were offset by declining indexes for the Transportation (-0.7%), Recreation, education and reading (-0.2%), Food (-0.1%) and Clothing and footwear (-0.1%) categories. The Alcoholic beverages and tobacco products category remained unchanged on a seasonally adjusted basis.
Special Aggregates
All-items excluding food and energy
The All-items excluding food and energy category rose by 2.0% between June 2000 and June 2001, slightly less than April and May's rates of 2.1%. June's advance can largely be attributed to the higher cost of cigarettes, mortgage interest and telephone services, as well as higher rents and housing replacement costs. Lower prices for computer equipment and supplies, and traveller accommodation led the declines.
On a monthly basis, the All-items excluding food and energy index edged up by 0.2% in June 2001. This was primarily due to higher prices for traveller accommodation, women's clothing and telephone services overshadowing falling prices for men's clothing and furniture.
Energy
On the heels of a 16.0% increase in May, the Energy index advanced by 10.4% between June 2000 and June 2001. All components of the index gained ground, but the increase was mostly due to the ongoing upsurge in natural gas prices (+62.0%), and higher electricity costs (+4.8%).
The monthly Energy index fell by 1.3%, the first drop since February 2001. Gasoline prices, which slid 4.3%, were primarily responsible for driving down the index. In contrast, electricity prices rose by 2.6% due to increases in Ontario and Prince Edward Island, while natural gas prices continued their upward trend by posting a 1.0% increase.
Goods and Services
Within the CPI, prices increased more rapidly in the Goods sector than in the Services sector. Prices for goods rose by 4.0% between June 2000 and June 2001, boosted by the non-durable goods category. The non-durable goods index rose by 6.8% on the strength of price increases for natural gas, cigarettes, beef and electricity. The semi-durable goods category saw its prices edge up by 0.3% as consumers paid more for women's clothing and newspapers. This was partly counterbalanced by falling prices for children's clothing, and footwear. In contrast to the other two categories, the index for durable goods slipped by 0.3% between June 2000 and June 2001, largely due to price decreases for computer equipment and supplies, furniture, and video equipment. These effects were partly countered by price increases for the purchase of automotive vehicles, automotive parts and supplies, and the purchase of recreational vehicles.
As a group, prices for Services advanced by 2.6% between June 2000 and June 2001, reflecting the higher cost of mortgage interest, restaurant meals, telephone services and rent. Traveller accommodation prices and air transportation charges were the primary source of downward pressure on the index.
In contrast to its annual movement, the goods index slipped on a monthly basis. It edged down by 0.3% compared to May, the result of declines in all three sub-components. A 0.3% drop in non-durable goods prices had the greatest impact as lower prices for gasoline, fresh vegetables and confectionery more than compensated for rising electricity prices. Prices for men's clothing and women's footwear led the 0.5% decline in semi-durable goods prices, while the major source of upward pressure came from higher prices for most women's clothing categories. Prices for durable goods dropped by 0.2%, pulled down by lower prices for furniture. Higher prices for refrigeration and air conditioning appliances; audio discs and tapes; and laundry and dishwashing appliances had an opposing influence on the durable goods category.
The Services index increased by 0.4% between May and June 2001, reflecting the increased cost of traveller accommodation, restaurant meals and telephone services. The monthly decline in the cost of homeowner's maintenance and repairs provided most of the downward pressure on the index.
[Main menu |
Highlights |
Tables and charts |
Technical notes |
User information |
Products and services |
Contact us |
Français]
All rights reserved Statistics Canada