Highlights:

Consumer prices advanced 2.6% in the 12 months to October 2008, a sharp slowdown from the 3.4% rise posted in September. On an unadjusted monthly basis, consumer prices fell 1.0% from September to October, the largest drop since June 1959.

All-items Consumer Price Index (CPI):

1. The slowdown in the 12-month change in the CPI was due largely to slower price increases for gasoline; prices at the pump rose 13.3% in October, compared with a 12-month change of 26.5% in September.
2. In addition to gasoline, prices for natural gas and fuel oil and other fuels have softened as the global economy has weakened.
3. Of the eight major components, prices for food continued to gain momentum and are now a leading contributor, along with shelter, to the 12-month change in the CPI.
4. A sharp drop in prices for gasoline between September and October (-13.4%) primarily contributed to the monthly decline in the CPI.

Main contributors to the 12-month change in the CPI:

Main upward contributors:

1. Gasoline (+13.3%)
2. Mortgage interest cost (+7.2%)
3. Bakery products (+14.2%)
4. Natural gas (+11.1%)

Main downward contributors:

1. Purchase and leasing of passenger vehicles (-9.0%)
2. Women’s clothing (-5.8%)
3. Computer equipment and supplies (-12.0%)
4. Video equipment (-11.5%)

Main contributors to the monthly change in the CPI, not seasonally adjusted:

Main upward contributors:

1. Property taxes (+3.2%)

Main downward contributors:

1. Gasoline (-13.4%)
2. Traveller accommodation (-7.0%)
3. Natural gas (-6.1%)