Canada Inflation At 14-Month Low in January


Consumer prices in Canada increased 1 percent year-on-year in January of 2015, down from a 1.5 percent rise in the previous month, as gasoline prices continued to fall.

Gasoline prices fell 26.9 percent in the 12 months to January, after declining 16.6 percent in December. As a result, transportation costs declined 5.3 percent, for the third consecutive month. Conversely, consumers paid 1.2 percent more for the purchase of passenger vehicles on a year-over-year basis.

Excluding gasoline, the CPI increased 2.4 percent on a year-over-year basis in January, following a 2.3 percent rise the previous month.

Food prices advanced 4.6 percent on a year-over-year basis in January, the largest gain since November 2011. Prices for food purchased from stores were up 5.4 percent, following a 4.2 percent rise the previous month. Prices for both fresh fruit and fresh vegetables posted higher year-over-year increases in January than in December. Consumers paid 2.8 percent more for food purchased from restaurants in January compared with the same month in 2014.

The shelter index rose 2.0 percent in the 12 months to January, following a 2.4 percent gain in December. Natural gas prices increased 13.9 percent, after recording a 16.5 percent rise the previous month. In contrast, prices for fuel oil declined 21.1 percent in January compared with the same month a year earlier.

Among provinces, the largest decline was in Prince Edward Island (-1.9 percent), while the smallest was in New Brunswick (-0.2 percent). On the other hand, Ontario's CPI rose 1.6 percent in the 12 months to January, the largest increase among the provinces. 

In all provinces, gasoline prices fell more on a year-over-year basis in January than in the previous month.
On a monthly basis and before seasonal adjustment, the gasoline price index fell 12.4 percent in January. Between June 2014 and January 2015, gasoline prices decreased 33.9 percent. In January, the gasoline price index was at its lowest level since April 2009.

On a seasonally adjusted monthly basis, the CPI decreased 0.2 percent in January, matching the declines in December and November. 

Canada Inflation At 14-Month Low in January


Statistics Canada | Carolina Cunha | carolina.cunha@tradingeconomics.com
2/26/2015 2:02:40 PM