The Consumer Price Index (CPI) increased 0.5% in September on a year-over-year basis, reported Statistics Canada. It is up from a 0.1% rise in August.
“The acceleration in the CPI was largely due to price changes in the transportation, recreation, education and reading, and shelter components,” explained Statistics Canada.
Overall, prices increased in six of the eight major component indexes in September.
Air Transportation Index
According to the data collected by Stats Can, the price of airline transportation decreased less in September at 3.2%, than the 16% drop in August.
“Traditionally, prices decline in September as demand weakens after prices rise during the peak summer travel season. Prices did not follow their usual seasonal pattern this year, as airfares fell during July and August amid the COVID-19 pandemic,” stated Statistics Canada.
Because of the travel restrictions and border closures, growth in tourist activity has remained slow. Additionally, traveller accommodation plummeted 26.5% since this time last year.
Over the last 12-month period, the price of gasoline has dropped by 10.7%. This decline was slightly less than the 11.1% price drop seen in August. In addition, over the last 12-month span, passenger vehicle prices have risen by 2.7% in September. Since the pandemic commenced, Statistics Canada explained that the price increase is a direct correlation to the increased demand for passenger vehicles.
Clothing And Footwear Index
Compared to this time last year, the price of clothing and footwear declined 4.1%. This marked a further drop in prices from 1.3% seen in August.
“Demand for back-to-school clothing this September may have been impacted by factors related to COVID-19, continuing a trend of lower clothing sales during the pandemic and contributing to lower prices for consumers,” explained Statistics Canada in their report.
Statistics Canada has been conducted research over the course of the COVID-19 pandemic. The agency released a statement regarded the compiled data.
“For more information about the impact of COVID-19 on consumer spending, please consult the research document entitled “Adjusting the Consumer Price Index to the new spending realities during the pandemic” released on October 8, which explores new sources of expenditure data to estimate basket weights that reflect shifting consumption patterns during the pandemic. The monthly adjusted price index (provisional) and the monthly adjusted consumer expenditure basket weights data tables are available. For more information on consumer expenditures during COVID-19, users can consult two available documents. The first is “Canadian Consumers Prepare for COVID-19,” which examines the shifting consumption patterns of Canadians during the COVID-19 pandemic up to March 14. The second is “Canadian Consumers Adapt to COVID-19: A Look at Canadian Grocery Sales up to April 11,” which explores a continued shift in the consumption patterns of Canadians during the COVID-19 pandemic up to April 11. All of the above publications can be found in the Prices Analytical Series (62F0014M).”
Source cited: https://www150.statcan.gc.ca/n1/daily-quotidien/201021/dq201021a-eng.htm