BUSINESS NEWS: Consumer Price Index - STATSCAN

Consumer Price Index

April 2010

Consumer prices rose 1.8% in the 12 months to April, following a 1.4% increase in March.

The 12-month change in the Consumer Price Index and the CPI excluding energy

Overall, energy prices rose 9.8% between April 2009 and April 2010, following a 5.8% increase during the 12-month period to March. Excluding energy, the Consumer Price Index (CPI) rose 1.1% compared with a 1.0% increase in March.

Gasoline prices exerted the strongest upward pressure on the all-items CPI for the sixth consecutive month. In April, prices at the pump were 16.3% higher than they were in April 2009. This follows a 17.2% rise in the 12 months to March.

In addition, natural gas prices were no longer exerting significant downward pressure on the CPI. Prices for natural gas were 3.3% higher in April than they were a year earlier. This followed a 22.4% decline in the 12 months to March, and it was the first 12-month increase in natural gas prices in over a year.
Evolution of the natural gas price index since April 2007

Prices for the purchase of passenger vehicles also put upward pressure on the CPI for the fourth consecutive month in April. These prices increased 5.3% following a 3.9% increase in March.
Seasonally adjusted monthly CPI increases

On a seasonally adjusted monthly basis, the CPI rose 0.1% from March to April, after decreasing 0.1% from February to March. April's increase was due mainly to a 0.6% rise in the shelter component. Higher prices for natural gas and homeowner's replacement costs largely accounted for the upward movement within this index.
12-month change: Seven of the eight CPI components rise

Overall, seven of the eight major components of the CPI recorded price increases in the 12 months to April. The exception was clothing and footwear.
Transportation continues to exert the most upward pressure on the Consumer Price Index

Transportation prices, which increased 6.2% in the 12 months to April, exerted the strongest upward pressure on the all-items CPI for the sixth consecutive month. In addition to higher gasoline and passenger vehicle prices, consumers paid 5.6% more for passenger vehicle insurance premiums in April than a year earlier.

Shelter costs rose 0.8% during the 12-month period to April, after declining 0.7% in March. Household utilities, which include electricity, water, natural gas, and fuel oil and other fuels, exerted the most upward pressure on the index. Price increases were also observed for property taxes and homeowner's replacement costs.

On the other hand, the mortgage interest cost index, which measures the change in the interest portion of payments on outstanding mortgage debt, fell 6.1% in April, following a 6.0% decrease in March.

Food prices advanced 1.0%, following a 1.3% increase in March. April's increase was the smallest since March 2008.

Upward pressure on the food index came largely from prices for food purchased from restaurants (+2.3%). Higher prices were also observed for sugar and confectionery and tomatoes. Prices fell for fresh fruit, meat, and bakery and cereal products.

Broad-based advances were observed in the health and personal care component, where prices were up 3.3%.

Prices for household operations, furnishings and equipment increased 1.1%, after a 1.4% increase in the 12 months to March. In April, the upward pressure on this index came primarily from higher prices for communications, other household goods and services, and child care and domestic services.

Prices increased 0.5% in the recreation, education and reading component in the 12 months to April. This follows a 0.7% rise between March 2009 and March 2010.

Prices for clothing and footwear fell 1.1%. The strongest downward pressure in this component came from lower prices for women's, children's, and men's clothing. Prices for women's and men's footwear also recorded small declines.

The provinces

As was the case in the previous three months, the largest year-over-year increases occurred in the four Atlantic provinces. On the other hand, Central Canada and three Western provinces posted higher 12-month price increases in April compared with March.
Higher price increases in Central Canada and three western provinces compared with March

In every province, the most significant upward pressure came from higher gasoline prices.

In Ontario, prices rose 2.2% in the 12 months to April. This was due primarily to higher prices for gasoline, passenger vehicle insurance premiums, and the purchase of passenger vehicles. Also, prices for natural gas increased 3.7% in April, after declining 36.3% in March. April's increase was the first 12-month increase since March 2009.

Prices went up 2.1% in Saskatchewan in the 12 months to April, after increasing 1.1% in March. These higher price increases were attributable mainly to less downward pressure from natural gas prices. Prices for natural gas fell 5.6% in the 12 months to April, following a 26.1% decline in March.

In Alberta, prices rose 1.6%, following a 1.0% increase in March. Upward pressure came mainly from gasoline prices and the cost of purchasing passenger vehicles. In addition, there was less downward pressure from prices for electricity.

Prices in British Columbia rose 1.0% in April compared with the same month last year, after a 0.5% increase in March. This faster increase in April was due mainly to the turnaround in natural gas prices, which rose 7.0% in the 12 months to April compared with an 8.2% drop in March.
The Bank of Canada's core index

The Bank of Canada's core index advanced 1.9% over the 12 months to April, following a 1.7% rise in March. April's increase was due primarily to a rise in prices for the purchase of passenger vehicles, passenger vehicle insurance premiums, property taxes, and food purchased from restaurants.

The seasonally adjusted monthly core index rose 0.2% in April, following a 0.3% decline in March.

For a more detailed analysis, consult the publication The Consumer Price Index.

SOURCE: Statistics Canada