Analysis

View the most recent version.

Archived Content

Information identified as archived is provided for reference, research or recordkeeping purposes. It is not subject to the Government of Canada Web Standards and has not been altered or updated since it was archived. Please "contact us" to request a format other than those available.

Archived

This page has been archived on the Web.

The Consumer Price Index (CPI) rose 0.7% in the 12 months to October, following a 1.1% increase in September. This slower rise was mainly attributable to a year-over-year decline in gasoline prices.

Gasoline prices fell 4.3% in October compared with the same month a year earlier. This followed a 0.3% decrease in the 12 months to September.

Lower gasoline prices were a factor in all provinces in October, with Saskatchewan (-8.6%) recording the largest year-over-year decrease and Ontario (-1.8%) posting the smallest.

On a monthly basis, gasoline prices fell 5.1% in October. Since the beginning of 2013, there have been an equal number of monthly increases and decreases in the gasoline price index, resulting in an average year-over-year growth rate of 0.3% over these ten months.

12-month change in the major components

Five of the eight major components recorded year-over-year gains in October. Higher shelter and food costs led the rise in the CPI. In contrast, the transportation and the clothing and footwear components contributed the most to the deceleration in the CPI.

Shelter costs rose 1.3% in the 12 months to October, following a 1.4% gain in September. The shelter index was led by a 3.2% year-over-year increase in property taxes. Consumers also paid more for rent, while mortgage interest cost declined 2.6%.

Food prices rose 0.9% in October compared with the same month last year, after posting a 1.2% increase in September. This slower increase was largely attributable to smaller year-over-year price gains for food purchased from stores, notably fresh vegetables and bakery products. Consumers paid 1.4% more for food purchased from restaurants in the 12 months to October, after paying 1.5% more in September.

The transportation index decreased 0.1% on a year-over-year basis in October, following a 0.8% increase in September. While consumers paid less for gasoline in the 12 months to October, they paid 1.7% more for the purchase of passenger vehicles, after paying 1.4% more in September.

Prices for clothing and footwear declined 0.7% in the 12 months to October, following a 0.4% increase in September. This decline was mainly attributable to a smaller monthly price gain in October 2013 compared with the same month last year.

12-month change in the provinces

Consumer prices rose at a slower year-over-year rate in seven provinces in October compared with September. Quebec recorded the largest deceleration. In New Brunswick, prices rose at a faster year-over-year rate, and in Saskatchewan prices increased at the same rate in October as in September. British Columbia was the only province to record a decline in consumer prices in the 12 months to October.

In Quebec, prices edged up 0.2% on a year-over-year basis, after increasing 0.9% in September. This 0.7 percentage point difference was largely attributable to gasoline prices, which decreased 6.3% in the 12 months to October, after declining 0.3% in September. Quebec posted the smallest year-over-year price increase for the purchase of passenger vehicles among the provinces.

Consumer prices in New Brunswick increased 0.8% in the 12 months to October, after rising 0.7% the previous month. Electricity prices rose 2.0% in October, the first monthly price change since June 2010.

In Saskatchewan, consumer prices rose 1.5% in the 12 months to October, matching the increase in the previous month. In addition to recording the largest price decline for gasoline, Saskatchewan posted the biggest year-over-year price gain for the purchase of passenger vehicles (+4.9%) among the provinces.

Seasonally adjusted monthly CPI decreases

On a seasonally adjusted monthly basis, the CPI declined 0.1% in October, following a 0.1% increase in September.

On a seasonally adjusted basis, four of the eight major components posted decreases in October. The clothing and footwear index recorded the largest decline on a seasonally adjusted basis (-0.7%), while the transportation and the health and personal care indexes both declined 0.2%. The recreation, education and reading component fell 0.1% on a seasonally adjusted basis.

The seasonally adjusted food index rose 0.1%, while before adjustment the cost of food declined 0.2% in October. This indicates that the observed decline in food prices was largely seasonal, although smaller than the typical decrease in October.

Non-seasonally adjusted monthly CPI declines

On a monthly basis and before seasonal adjustment, the CPI fell 0.2% in October, after posting a 0.2% increase in September.

Gasoline prices fell in all provinces in October, with Manitoba (-7.2%) recording the largest decline and Alberta (-3.3%) posting the smallest decrease.

Consumers paid 8.1% less for traveller accommodation in October compared with September. At the same time the cost of natural gas (-3.9%) and electricity (-1.2%) declined. Conversely, prices for the purchase of passenger vehicles advanced 1.6% in October, after rising 1.0% in September.

On a provincial basis, consumer prices declined in five provinces in October, with the largest decrease occurring in Nova Scotia (-0.5%). Saskatchewan and Newfoundland and Labrador, in contrast, posted increases of 0.2% and 0.1% respectively.

Bank of Canada’s core index

The Bank of Canada’s core index rose 1.2% in the 12 months to October, after increasing 1.3% in September.

On a month-to-month basis and before seasonal adjustment, the core index edged up 0.2% in October, matching the rate of change recorded in September.

On a monthly basis, the seasonally adjusted core index posted no change in October, after increasing 0.1% in the previous month.