Consumer Price Index, June, 2016, published July 22, (2002=100)

Posted by on Aug 3, 2016 in Featured | Comments Off on Consumer Price Index, June, 2016, published July 22, (2002=100)

The Consumer Price Index rose by 1.5% in June compared with June 2015, equal to the annualized increase in May.     

The CPI in June for goods was up 0.9% from a year earlier while the CPI for services rose 1.9%.

Gasoline prices in June were down 8.5% from  June 2015, after dropping 7.1% in May.  Overall, energy prices declined 4.4% between June 2015 and June 2016, following a  3.6%  annualized rate of decrease in May.  Excluding energy, the annualized Consumer Price Index rose 2.0% in June, unchanged from the year-over-year increase in May.

Food prices rose 1.3%  in the 12 months to June, following the 1.8% rate of annualized increase posted in May.  This was the smallest year-over-year gain since March 2014. The cost of  food purchased from stores in the 12 months to June grew by 0.8%, down from a  1.4% increase in May.  Prices for beef and dairy products contributed the most to the decline.   Prices for food purchased from restaurants advanced 2.6% on a year-over-year basis, matching the increase in May.

Costs associated with shelter rose 1.6% in June over June 2015, after an annualized gain of 1.4% in May.  The acceleration was partly due to the homeowners ‘ replacement cost index which was up more year-over-year in June (+3.5%) than in May (+2.7%).  Additionally, fuel oil prices were down less on a year-over-year basis in June (-13.2%) than in May (-17.3%).  The natural gas index posted a larger decline on the 12 months to June than in the previous month.

Consumers paid 1.6% more for household operations, furnishings and equipment in June compared to June 2015, down from the 2.0% year-over-year increase recorded in May.

Transportation prices increased 1.1% in the 12 months to  June 2016,  unchanged from the annualized growth rate in May.  The purchase of passenger vehicles index rose 5.6% in the 12 months to June 2016 following a 4.3% increase in May.   This acceleration was part;y offset by a larger year-over-year decrease in gasoline prices, down 8.5%.  The passenger vehicle  insurance premiums index was up less year-over-year in June (+0.2%) than in May (+1.2%) due mainly to Ontario where regulatory changes to coverage  took effect on June 1, 2016.

In the 12 months to June 2016, consumer prices rose in all ten provinces.  The CPI grew the most in  Newfoundland and Labrador  (+2.4%), followed by Manitoba (+2.1%) and British Columbia  (+2.0%).  The  lowest annualized increase occurred in Quebec (+0.6%).  Consumer prices in Ontario were 1.7% higher than in June 2015.