rates
AN UNEVEN LANDSCAPE OF PRICE SURGES Building on the commentary from the previous page on inflation, it’s pretty clear that the inflation story is a complicated one, not only because of base-year and supply-chain effects, but also because of how the individual components of the CPI are conspiring to generate the headline inflation number. For example, the most recent 3.7% overall increase in Canada’s CPI reflects energy prices (which includes gasoline) that rose by
19.7% over the past year, by far the biggest outlier among the components of the CPI. But other goods and services have seen above-average surges in prices as well, including transportation (6.6%) and shelter (4.9%). That said, not everything costs a lot more, including clothing (1.0%), household furnishings (1.1%), and food (1.7%). As with most things, the devil is in the details, and the inflation story is no different.
A MIXED SHOPPING BAG OF CONSUMER PRICE INCREASES
3.7%
ALL ITEMS
ALCOHOL, TOBACCO, MARIJUANA
1.7%
1.0%
CLOTHING
19.7%
ENERGY
1.7%
FOOD
5.0%
GOODS
HEALTH PERSONAL CARE
3.6%
1.1%
HOUSEHOLD OPS
RECREATION EDUCATION
2.9%
2.6%
SERVICES
4.9%
SHELTER
6.6%
TRANSPORTATION
0%
5%
10%
15%
20%
DATA: ANNUAL CHANGES IN CONSUMER PRICE INDEX CATEGORIES, MONTHLY, NOT SEASONALLY ADJUSTED; JULY 2021
SOURCE: STATISTICS CANADA. TABLE 18-10-0004-01
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