| National Index Highlights |
Twelve-month percentage change in the CPI: +0.7%
Twelve-month percentage change in the CPI excluding energy: +2.0%
Canadian consumers had to pay 0.7% more in December 2001 than they did in December
2000 for the goods and services included in the Consumer Price Index (CPI) basket.
This 12-month increase along with that of November 2001, is the smallest advance
since February 1999. The slowdown in the 12-month percentage change in the CPI
observed since October 2001 is primarily due to a drop in energy prices, especially
gasoline prices. For the 12-month period ending in December 2001, the All-items
excluding energy index rose 2.0%, its smallest increase in 2001. As shown in the
graph 5, the All-items excluding energy index has been reflecting price stability
since July 2001.
The energy index fell 11.4% between December 2000 and December 2001. This decrease
is mainly due to a 19.3% drop in gasoline prices. Lower prices for fuel oil (-27.3%)
and natural gas (-4.3%) also exerted some downward pressure on the energy index,
while an increase in electricity prices (+3.9%) somewhat offset this decline.
Among the main factors contributing to the 12-month increase in the All-items
CPI in December were higher cigarettes prices, rents, as well as higher prices
for restaurant food and beef. In addition to the drop in energy prices, lower
prices for automotive vehicle purchases and traveller accommodation also offset
the increase in the All-items CPI.
The annual average CPI was 2.6% higher in 2001 than in 2000
The annual average All-items CPI for Canada was 2.6% higher in 2001 than in
2000. This increase is comparable to the 2.7% rise registered between 1999 and
2000. Except for the increase in 1991, which was affected by the introduction
of the GST, the increases in 2000 and 2001 are the largest since 1990 (+4.8%).
In 2001, rising energy prices did not have as great an impact on the increase
in the All-items CPI as they had in 2000. The annual average energy index rose
only 3.3% in 2001, compared with 16.2% in 2000. In 2001, the increase in energy
prices was largely due to a 29.6% jump in natural gas prices (+21.6% in 2000).
As to the annual average fuel oil index, it increased only 0.2% in 2001, whereas
it had risen 41.4% in 2000. The main factor tempering the rise in the energy
index in 2001 was the drop in gasoline prices. These fell 2.6%, whereas they
had climbed 21.9% in 2000.
Excluding energy prices, the All-items CPI rose 2.4% in 2001. This rise represents
a break from the 1.4% and 1.5% increases measured since 1996. The rise in 2001
is mostly attributable to increases in the indexes for cigarettes, restaurant
food, mortgage interest cost, beef and rent.
Annual average indexes are obtained by calculating the average of the index
levels for the twelve months of the calendar year. Two tables showing the changes
in annual average indexes appear on page 21 of "The consumer price index"
publication (Catalogue No. 62-001-XPB).
Monthly percentage change in the CPI: +0.1%
Between November and December 2001, the All-items CPI rose 0.1%. This slight
increase followed a 0.9% decline between October and November. The greatest
impact on the monthly increase in the CPI in December was from higher prices
for natural gas, fresh vegetables and, to a lesser extent, fresh fruits and
air transportation. However, decreases in the prices of gasoline, women's clothing,
traveller accommodation and fuel oil tempered the monthly rise in the All-items
index.
The natural gas index advanced by 13.9% in December after five consecutive declines,
including a 22.4% tumble in November. While most of November's decline was attributable
to a credit received by a large proportion of Alberta customers, the increase
registered in December was primarily due to the resumption of payments by those
same customers. A 4.8% increase in natural gas prices in Ontario also contributed
significantly to the rise in the Canadian index.
Prices of fresh vegetables jumped 13.0% in December 2001, as cold spells in
the United States affected various crops. Fresh fruit prices rose by 6.9%. Nevertheless,
prices of fresh vegetables were lower (-4.0%) than a year earlier, while prices
of fresh fruits were higher (+11.2%).
The price of air transportation rose 4.0% between November and December 2001.
This increase was primarily due to the higher overseas rates, while rates for
domestic travel were down.
Consumers paid 4.1% less for gasoline in December than in November 2001. This
was the third straight monthly decrease. Gasoline prices dropped in all provinces
except New Brunswick (+0.2%), where the provincial tax on gasoline increased.
Price declines were generally greater in Western Canada, with wholesale prices
in these markets registering declines while markets in Central and Eastern Canada
showed slight increases.
The women's clothing index posted a 2.3% decline in December 2001, as many items
were available at reduced prices.
Between November and December 2001, the prices of traveller accommodation fell
by 3.7%, continuing the downward price trend that has marked the slow tourism
season that began in September.
Between November and December 2001, fuel oil prices fell by 5.5%. This decline
affected all provinces fairly uniformly. Since January 2001, fuel oil prices
have generally fallen. The main cause of these price movements was a drop in
the price of oil per barrel, which hovered around $44 at the start of the year
and was in the $29 range at the end of December 2001.
The seasonally adjusted CPI rose 0.5% between November 2001 and December 2001
After adjusting for seasonal variations, the All-items CPI advanced by 0.5%
between November and December 2001. This increase followed a 0.6% decrease registered
in November. Indexes contributing to the increase were shelter (+1.1%), food
(+0.9%), household operations and furnishings (+0.4%), recreation, education
and reading (+0.2%), and health and personal care (+0.1%). A 0.3% decline in
the seasonally adjusted transportation index tempered the rise in the All-items
index. The clothing and footwear index and the alcoholic beverages and tobacco
products index were unchanged between November and December.
Special Aggregates
Energy
The energy index fell by 11.4% between December 2000 and December 2001. All
the components were down except for electricity, which posted a 3.9% rise. Falling
prices for gasoline (-19.3%) and fuel oil (-27.3%) explain most of the 12-month
drop in the energy index.
Between November and December 2001, energy prices edged down 0.3%. This was
much less than the 8.8% plunge recorded in November. December's moderate decrease
may be explained by the rise in the natural gas index (+13.9%) largely offsetting
the downward price movements of gasoline (-4.1%) and fuel oil (-5.5 %). Once
again, it should be noted that December's rise in the natural gas index was
mainly due to the resumption of payments by Alberta customers who had received
a credit in November.
Goods and Services
In December 2001, the goods index posted a 0.8% 12-month decline, primarily
resulting from a 1.7% decrease in the prices of durable goods. Much of that
decrease was due to lower prices for automotive vehicle purchases. Much of the
decrease in the non-durable goods index (-0.3%) was due to lower prices for
gasoline and fuel oil. Largely offsetting those declines were higher prices
for cigarettes, beef and electricity. The semi-durable goods index was down
1.1%, primarily because of lower prices for women's clothing.
The services index advanced by 2.2% between December 2000 and December 2001,
mostly owing to an increase in the prices of restaurant food, as well as higher
rent and homeowners' replacement cost. Traveller accommodation was the only
factor that significantly tempered the 12-month rise in the services index.
Between November and December 2001, the goods index rose 0.2%. An increase in
prices for non-durable goods (+0.6%) was only partially offset by a decrease
in the semi-durable goods index (-1.1%). While the rise in the natural gas index
was offset by the drop in gasoline prices, the remaining push on the non-durable
goods index came largely from higher prices for fuel oil, fresh vegetables and
fresh fruits. The drop in the semi-durable goods index is primarily attributable
to lower prices for women's clothing, and footwear. The durable goods index
remained unchanged from November.
In December 2001, the prices of services purchased by consumers were 0.1% higher
than in November. The slight rise is the result of a large number of offsetting
price movements. For example, a drop in prices for traveller accommodation services
offset higher air transportation prices. A decrease in the cost of mortgage
interest offset increased prices for postal and other communications services
as well as restaurant food.
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