Inflation in Canada

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February 19, 2010

Inflation in Canada by Sento

The consumer price index increased by 1.9 percent this past month after a 1.3 percent rise in December 2009, according to the monthly report of Statistics Canada released yesterday. That is the most significant growth in the index since November 2008.

During the last four months, the annual inflation rate has changed noticeably. It rose from -0.9 percent to 1.9 percent. Prices of cars increased, by 3.1 percent, last month. Gasoline prices rose too, by 23.9 percent since January 2009. Insurance prices grew by 7.7 percent. Food prices rose by 1.4 percent and restaurant prices by 2.6 percent last month.

Only the prices of housing, footwear and clothing did not increase. Housing costs decreased by 1.1 percent since January 2009. As for Ontario solely, overall prices here in Ontario increased by 1.9 percent over last 12 months. This inflation actually doesn’t have to mean anything negative – it might well be a sign of recovery. What do you think?