Consumer prices rose 2.3% in the 12 months to January 2011, following the 2.4% increase posted in December 2010.

Energy prices rose 9.0% during the 12 months to January, following a 10.5% increase in December. Gasoline prices increased 13.0% in January, matching the increase in December. Consumers also paid 6.4% more for electricity in January compared with the same month last year.

Excluding energy, the Consumer Price Index (CPI) rose 1.7% in the 12 months to January, identical to the increase in December.

Note to readers

On January 1, 2011, the Quebec Sales Tax increased from 7.5% to 8.5%. In Quebec, if prices before taxes had remained the same, this tax change would have increased the all-items CPI by about half a percentage point in this province. At the national level, under the same assumptions, this change in the tax rate would have increased the all-items CPI by about 0.1 percentage points.

The Bank of Canada's core index excludes eight of the Consumer Price Index's most volatile components (fruit, fruit preparations and nuts; vegetables and vegetable preparations; mortgage interest cost; natural gas; heating oil and other fuels; gasoline; inter-city transportation; and tobacco products and smokers' supplies) as well as the effects of changes in indirect taxes on the remaining components.

On a seasonally adjusted monthly basis, consumer prices rose 0.3% from December 2010 to January 2011, the seventh consecutive monthly increase. In addition, the transportation index, which includes gasoline, also increased for the seventh consecutive month, rising 1.1% from December to January. The food index went up 0.5%, matching the increase in December.

12-month change: Increases in seven of the eight major components

On a year-over-year basis, prices increased in seven of the eight major components of the CPI in the year to January. The only exception was clothing and footwear.

The largest increase occurred in the transportation component, where prices rose 4.8% in the 12 months to January, following a 4.9% advance in December.

In addition to higher gasoline prices in the 12 months to January, consumers paid 4.8% more in passenger vehicle insurance premiums. They also paid more for the purchase of passenger vehicles and for air transportation.

Shelter costs rose 2.2% in January, following a 2.7% rise in December. Along with higher electricity prices, homeowners' replacement cost increased 3.6%. However, the mortgage interest cost index, which measures the change in the interest portion of payments on outstanding mortgage debt, continued to decrease.

Food prices rose 2.1% in the 12 months to January, following a 1.7% increase in December. Consumers paid 4.0% more for meat and 10.7% more for sugar and confectionery. Prices for food purchased from restaurants also increased 2.7%.

The recreation, education and reading price index rose 1.6% in January, after increasing 1.1% in December. Prices rose for cablevision and satellite services and for the use of recreational facilities and services. Conversely, prices fell for computer equipment and supplies as well as for video equipment.

Prices for household operations, furnishings and equipment increased 1.6% between January 2010 and January 2011. Within this component, higher prices were recorded for several items, notably for child care and domestic services.

Prices for alcoholic beverages and tobacco products rose 3.1% in January. Consumers paid 5.4% more for cigarettes.

In January, prices for clothing and footwear continued to decline on a year-over-year basis. Clothing and footwear prices fell 2.4% in January, following a 2.0% decrease in December. Consumers paid less for women's clothing and children's clothing.

The provinces

Consumer prices rose in every province between January 2010 and January 2011. Drivers continued to face double-digit increases for gasoline in most provinces.

In Ontario, consumer prices rose 2.9% in the 12 months to January, after advancing 3.3% in December. Gasoline prices rose 15.6%. Consumers in Ontario also paid more for passenger vehicle insurance and electricity.

On January 1, 2011, consumer prices were affected by an increase in the Quebec Sales Tax. In Quebec, consumer prices increased 2.1% in the 12 months to January, following a 1.6% increase in December. Prices for gasoline rose 12.9%, while prices for meat increased 4.9%.

Prices in British Columbia increased 2.3% in the 12 months to January. Consumers in British Columbia paid 10.9% more for gasoline and 7.9% more for food purchased from restaurants. Electricity prices and homeowners' replacement cost also rose.

In Alberta, prices rose 1.0% in January following a 0.8% increase in December. Alberta drivers paid 11.4% more at the pump. Natural gas prices, which in Alberta are prone to larger fluctuations, were down 24.2% in the 12 months to January. This contrasts with a 3.3% decrease for Canada as a whole.

In Manitoba, consumer prices increased 2.0%, after increasing 1.2% in December. Almost half of the 0.8 percentage point increase can be attributed to higher gasoline prices.

Table 2

Consumer Price Index by province, and for Whitehorse, Yellowknife and Iqaluit

1.

2005 CPI basket weights at April 2007 prices, Canada, effective May 2007. Detailed weights are available under the Documentation section of survey 2301 (www.statcan.gc.ca/imdb-bmdi/index-eng.htm).

2.

Figures may not add to 100% due to rounding.