Statistics of Canada released the Consumer Price Index for September.
The 12-month change in the All-items index excluding energy remained stable at 1.6 percent, while the 12-month change in the All-items index (CPI) jumped to 3.4 percent. This 12-month change represents a significant increase compared to the 2.6 percent advance recorded in August 2005. For the past year, the 12-month change in the All-items index excluding energy has been between 1.4 percent and 1.7 percent.
The strong increase in the 12-month change in the All-items index was due mostly to higher gasoline prices. A large price increase for gasoline played a substantial part in the rise in the 12-month percentage change to 34.7 percent compared with 20.1 percent in August.
Like the All-items index excluding energy, the All-items index excluding the eight volatile components as defined by the Bank of Canada remained stable. The 12-month percentage change remained at 1.7 percent in September and has not risen above 2% since December 2003.
On a monthly basis, the CPI All-items index rose by 0.9% in September. There have been only three increases of comparable magnitude over the past 15 years. Not since the introduction of the GST in January 1991, and the increase in tobacco and gasoline taxes in May 1989, has a monthly increase exceeded 0.9%. Most of the monthly increase this September was due to higher prices for gasoline and men's and women's clothing.
Gasoline prices propel the 12-month All-items index to its biggest increase in 30 months.
In September, the CPI posted a 3.4% increase over September 2004. Most of this increase can be attributed to higher gasoline prices. Over the past year, the rise in prices for fuel oil, the purchase and leasing of automotive vehicles, restaurant meals and homeowners' replacement costs served to push up the CPI. Those increases were partly offset by lower prices for computer equipment and supplies.
