Consumer prices rose 0.8% in the 12 months to November, following a 1.2% gain in October. The November increase was the smallest year-over-year gain in the Consumer Price Index (CPI) since October 2009.
The slower increase in the CPI in November compared with October was attributable to a smaller year-over-year price increase for gasoline, as well as price decreases for the purchase of passenger vehicles.
Gasoline prices rose 0.4% in the 12 months to November, following a 4.0% advance in October. The largest year-over-year increase occurred in Quebec (+2.4%), and the biggest decline in British Columbia (-4.7%).
Prices for the purchase of passenger vehicles decreased 1.8% in the 12 months to November. This decline was attributable to smaller monthly price increases in November 2012 compared with November 2011.
12-month change in the major components
Consumer prices rose in six of the eight major components in the 12 months to November, the exceptions being transportation as well as clothing and footwear.
Prices for transportation fell 0.2% year over year in November, after rising 1.7% in October. The 12-month decline in November was led by lower prices for the purchase of passenger vehicles. Smaller year-over-year price increases for gasoline in November compared with October were also a factor.
Food prices increased 1.7% on a year-over-year basis in November following a 2.0% advance the previous month. Consumers paid 2.1% more for food purchased from restaurants and 4.3% more for meat. In contrast, prices declined 5.8% for fresh vegetables.
Shelter costs increased 1.0% in the 12 months to November following a 0.9% advance in October. Homeowners’ replacement cost, property taxes and rent increased on a year-over-year basis. Conversely, mortgage interest cost decreased 3.0% and natural gas prices declined 6.8%.
12-month change in the provinces
Consumer prices rose at a slower year-over-year rate in November compared with October in all provinces except Alberta. The CPI for Prince Edward Island and for Quebec rose the most, while British Columbia increased the least.
Consumer prices in both Prince Edward Island and Quebec increased 1.5% in the 12 months to November, after rising 2.1% and 1.9% respectively in the previous month. Both provinces posted larger year-over-year price increases for gasoline relative to the national average.
Prices in British Columbia rose 0.1% on a year-over-year basis in November, following a 0.5% increase in October. Of all the provinces, British Columbia posted the largest year-over- year price decrease for gasoline. Consumers in the province also paid less in homeowners’ replacement cost and for the purchase of passenger vehicles.
In Alberta, consumer prices rose 0.6% in the 12-months to November, matching the increase in the previous month. Natural gas prices continued to decrease on a year-over-year basis in November but at a slower rate than in October. Gasoline prices declined in November after increasing in October.
Seasonally adjusted monthly CPI decreases
On a seasonally adjusted (http://www23.statcan.gc.ca:81/imdb/p2SV.pl?Function=getSurvey&a mp;SDDS=2301&lang=en&db=imdb&adm=8&dis=2#b10) monthly basis, the CPI decreased 0.2% in November after increasing 0.2% in October.
The seasonally adjusted index for transportation declined 1.2% in November following a 0.8% increase in October. The food index rose 0.1% in November after increasing 0.4% the previous month. The clothing and footwear index increased 0.3% after registering no change in October.
Bank of Canada’s core index
The Bank of Canada’s core index (http://www.statcan.gc.ca/pub/62-001-x/2012011/technote- notetech2-eng.htm) rose 1.2% in the 12 months to November, following a 1.3% increase in October.
On a monthly basis, the seasonally adjusted core index posted no change in November after increasing 0.1% in October.
Note to readers
The timing for the introduction of new model year vehicles into the purchase of passenger vehicles index (http://www23.statcan.gc.ca/imdb-bmdi/document/2301_D51_T9_V1- eng.htm) has changed.
The Bank of Canada’s core index excludes eight of the Consumer Price Index’s most volatile components (fruit, fruit preparations and nuts; vegetables and vegetable preparations; mortgage interest cost; natural gas; fuel oil and other fuels; gasoline; inter-city transportation; and tobacco products and smokers’ supplies) as well as the effects of changes in indirect taxes on the remaining components.
A seasonally adjusted series is one from which seasonal movements have been eliminated. Users employing Consumer Price Index data for indexation purposes are advised to use the unadjusted indexes. For more information on seasonal adjustment, see Seasonal adjustment and identifying economic trends (http://www5.statcan.gc.ca/bsolc/olc-cel/colc-cel?catno=11-010- X201000311141&lang=fra) (http://www.statcan.gc.ca/bsolc/olc- cel/olc-cel?catno=11-010-X201000311141&lang=eng) .
Available without charge in CANSIM: tables 326-0009, 326-0012, 326-0015 and 326-0020 to 326-0022.
Definitions, data sources and methods: survey number 2301.
For a more detailed analysis, consult the publication The Consumer Price Index. The November 2012 issue of The Consumer Price Index, Vol. 91, no. 11 (62-001-X, free), is now available from the Key resource module of our website under Publications.
More information about the concepts and use of the Consumer Price Index are also available online in Your Guide to the Consumer Price Index (62-557-X, free) from the Key resource module of our website under Publications.
The Consumer Price Index for December will be released on January 25, 2013.
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