From Statistics Canada
For the convenience and information of our readers, Straight Goods is pleased to post the Statistics Canada Consumer Price Index for January 2000.
Between January 1999 and January 2000, consumers experienced a 2.3% increase in the prices of goods and services included in the Consumer Price Index (CPI) basket. This increase was lower than the 2.6% seen in December, but comparable to the increases of 2.2% in November and 2.3% in October. Energy prices were once again the main contributor to the CPI's annual increase. The CPI excluding energy rose 1.1% in January, its lowest increase since March 1999.
The annual increase in the CPI was in large part due to increases in gasoline prices and household heating costs (fuel oil and natural gas). Global prices for crude oil have been climbing due to reduced production by OPEC countries. January's 25.3% annual increase in gasoline prices was the second largest in the past 12 months.
Other important contributors to the overall price increase in January were food purchased from restaurants, tuition fees and mortgage interest costs. January's increase of 1.7% in mortgage interest costs was the largest annual increase since December 1995. These were somewhat neutralized by price decreases for computer equipment and supplies, and for fresh fruit.
CPI declines slightly from December to January
In January, the CPI was 0.1% lower than in December 1999. Prices declined for air transportation, travel tours (due to seasonally lower prices) and for automotive vehicles. These monthly declines were only partly offset by price increases for fresh vegetables, non-alcoholic beverages and natural gas.
Air transportation prices fell 8.3%, due primarily to seasonal rate decreases for a number of domestic and transatlantic routes.
A 9.5% decrease in the prices of travel tours was in keeping with the patterns of previous years. January has traditionally seen low demand for holiday packages for Canadians travelling to winter destinations.
Between December 1999 and January 2000, automotive vehicle prices declined 0.9%. This was a combined result of manufacturer rebates for certain models and dealer discounts to help spur sales.
Fresh vegetable prices rose from December by 6.8%. This was in keeping with those observed in January of previous years, and it was a result of reduced supplies.
Monthly prices increased for natural gas by 2.4%. This rise reflected increases in Ontario, Saskatchewan and British Columbia. The most cited reason for the price increase was higher costs for gas purchases by distributors. Natural gas rates remained unchanged in most other provinces.
This release is available on Statistics Canada's Web site (www.statcan.ca).
The February 2000 Consumer Price Index will be released on March 15.
For more information, or to enquire about the concepts, methods or data quality of this release, contact Client Services (613-951-9606; fax: 613-951-1539; infounit@statcan.ca), Prices Division.
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