Just got my 'daily' from Statistics Canada and surprise the CPI is up again!

Of particular interest:

 

"Downward movements from homeowners' replacement cost (-2.1%) andmortgage interest cost were also recorded.

 

The mortgage interest cost index, which measures the change in theinterest portion of payments on outstanding mortgage debt, fell 4.0% inNovember, following a 3.1% decrease in October."

 

So we have positive CPI with a prettyheavy fall in mortgage costs b/c of crazy low interest rates.

 

It will be interesting trying to figureout how to raise interest rates to slow inflation when that is going to end upbeing a shock to mortgage prices.

 

There you go, a dose of gloom and doomfor your day :)

Following is the full report on the CPI from Statistics Canada, you can find this information on their website at:

www.statcan.gc.ca

--------------------------------------------------------------------------------

Consumer Price Index

November 2009

 

 

Consumer prices rose 1.0% in the 12 months to November, following a 0.1%increase in October.

 

The rise in the all-items Consumer Price Index (CPI) was due primarilyto gasoline prices. Prices at the pump are now exerting upward pressure on theCPI after an extended period in which they were the main contributors toyear-over-year declines in overall consumer prices.

 

In November, gasoline prices were 14.1% higher than they were inNovember 2008. This follows a 13.1% decline between October 2008 and October2009.

 

Overall, energy prices rose 1.3% between November 2008 and November2009, following a 12.7% decline the month before.

 

 

Seasonally adjusted monthly CPIincreases

 

 

On a seasonally adjusted monthly basis, the CPI went up 0.6% fromOctober to November, after rising 0.4% from September to October. November'sincrease was due mainly to a 1.8% rise in the transportation index.

 

The seasonally adjusted monthly CPI has gone up in six of the past sevenmonths.

 

 

12-month change: Seven of the eightmajor components in the CPI record increases

 

 

Except for shelter, all major components of the CPI recorded priceincreases in November. The three components exerting the greatest upwardpressure on the CPI were transportation, household operations, furnishings andequipment, and food.

 

Transportation prices, which rose 1.9% in the 12 months to November,exerted the largest upward pressure on the CPI due primarily to higher gasolineprices. It was the first 12-month increase for this component since October2008.

 

In addition to higher prices at the pump, consumers paid 7.8% more forpassenger vehicle insurance premiums. However, prices for passenger vehicleswere 6.0% lower than the same period last year.

 

The cost of household operations, furnishing and equipment rose 2.8%during the 12-month period to November. Upward pressure came fromcommunications, child care and domestic services, furniture and householdtextiles, household appliances, and other household goods and services.

 

Food prices rose 1.7%, following a 2.3% increase in October. November'sadvance was the smallest since April 2008.

 

Prices for dairy products and eggs rose 2.1% while prices for fish,seafood and other marine products rose 5.4%. Prices for food purchased fromrestaurants went up 2.7%. On the other hand, prices fell for fresh fruit(-5.7%) and fresh vegetables (-5.9%).

 

Recreation, education and reading costs advanced 1.8% in the 12 monthsto November. Major contributors to the increase were tuition fees and readingmaterial and other printed material. In contrast, prices for computer equipmentand supplies and other electronic equipment items such as video, audio, andphotographic equipment continued to fall.

 

Broad-based price advances occurred in the health and personal carecomponent (+3.2%).

 

Shelter costs declined 1.7% between November 2008 and November 2009.This drop was mainly the result of price decreases in natural gas (-29.7%) andfuel oil and other fuels (-10.6%). Unlike gasoline, prices for natural gas andfuel oil and other fuels were still exerting downward pressure on the CPI inNovember.

 

Downward movements from homeowners' replacement cost (-2.1%) andmortgage interest cost were also recorded.

 

The mortgage interest cost index, which measures the change in theinterest portion of payments on outstanding mortgage debt, fell 4.0% inNovember, following a 3.1% decrease in October.

 

On the other hand, homeowners' maintenance and repairs costs andproperty taxes both increased by 4.3% in November.

 

 

Provinces: Consumer prices up in allprovinces

 

 

Consumer prices rose in all provinces in the 12 months to November. Thelargest increases occurred in New Brunswick (+2.2%), Prince Edward Island(+1.9%), Nova Scotia (+1.7%), and Quebec (+1.7%).

 

Consumers in all Atlantic provinces saw price increases between November2008 and November 2009. Increases in the all-items CPI in these provinces weremostly due to higher gasoline prices and less downward pressure from fuel oiland other fuels.

 

Price increases in Quebec were driven by higher prices for gasoline andfood purchased from restaurants.

 

In Ontario, prices rose 1.0%. This growth was primarily due to the risein gasoline prices (+17.5%) and passenger vehicle insurance premiums (+11.6%).Price decreases for natural gas eased the upward pressure.

 

Prices in British Columbia rose 0.1%. This was the first 12-monthincrease in the province since May 2009.

 

 

12-month change in the Bank of Canada'score index

 

 

The Bank of Canada's core index advanced 1.5% over the 12 months toNovember, following a 1.8% rise in October.

 

The seasonally adjusted monthly core index increased 0.2% from Octoberto November, following a 0.3% increase in October.

 

For a more detailed analysis, consult the publication The Consumer PriceIndex.

 

Available on CANSIM: tables 326-0009,326-0012, 326-0015 and 326-0020 to 326-0022.

 

Definitions, data sources and methods:survey number 2301.

 

More information about the concepts and use of the CPI are also availableonline in Your Guide to the Consumer Price Index (62-557-X, free) from the Keyresource module of our website under Publications.

 

The November 2009 issue of the Consumer Price Index, Vol. 88, no. 11(62-001-X, free), is now available from Key resource module of our websiteunder Publications. A paper copy is also available ($12/$111). A more detailedanalysis of the CPI is available in this publication. See How to orderproducts.

 

The December Consumer Price Index will be released on January 20, 2010.

 

For more information, or to enquire about the concepts, methods or dataquality of this release, contact the Dissemination Unit (toll-free1-866-230-2248; 613-951-9606; fax: 613-951-2848; prices-prix@statcan.gc.ca),Consumer Prices Division.

 

--------------------------------------------------------------------------------

Table: Consumer Price Index and majorcomponents, Canada(1)

(2002=100)

____________________________________________________________________________

October

2008 to

                                Relative    NovemberNovember     October

                           importance(2)        2008        2009        2009

____________________________________________________________________________

                              Unadjusted  UnadjustedUnadjusted  Unadjusted

                                                                            

                           -------------  --------------------  ----------

                                                                    % change

----------

All-items                      100.00(3)       114.1       115.2         0.1

Food                               17.04       119.5       121.5         2.3

Shelter                            26.62       123.4       121.3        -1.6

Household operations,

 furnishings and

 equipment                         11.10       105.5       108.5         2.6

Clothing and footwear               5.36        94.1        95.1         0.6

Transportation                     19.88113.2       115.4        -3.1

Health and personal care            4.73       110.1       113.6         3.4

Recreation, education

 and reading                       12.20       101.9       103.7         1.5

Alcoholic beverages and

 tobacco products                   3.07       128.5       131.3         2.7

All-items (1992=100)                           135.8       137.2         0.1

Special aggregates

Goods                              48.78       108.1       108.6        -1.7

Services                           51.22       120.0       121.8         1.8

All-items excluding food

 and energy                        73.57       111.3       112.2         1.3

Energy                              9.38       130.7       132.4       -12.7

Core CPI(4)                        82.71       113.0       114.7         1.8

____________________________________________________________________________

_____________________________________

                             November

                              2008 to

                             November

                                 2009

_____________________________________

                           Unadjusted

                                    

                           ----------

                                     

                             % change

                                    

                           ----------

All-items                         1.0

Food                              1.7

Shelter                          -1.7

Household operations,               

 furnishings and                    

 equipment                        2.8

Clothing and footwear             1.1

Transportation                    1.9

Health and personal care          3.2

Recreation, education                

 and reading                      1.8

Alcoholic beverages and             

 tobacco products                 2.2

All-items (1992=100)              1.0

Special aggregates                  

Goods                             0.5

Services                          1.5

All-items excluding food            

 and energy                       0.8

Energy                            1.3

Core CPI(4)                       1.5

_____________________________________

1.          The month-to-month percentage changesare available from   

            the monthly publication TheConsumer Price Index.          

2.          2005 CPI basket weights at April 2007prices, Canada:      

            Effective May 2007. Detailedweights are available under   

  the Documentation sectionof                               

            survey 2301(www.statcan.gc.ca/imdb-bmdi/index-eng.htm).    

3.          Figures may not add up to 100% due torounding.            

4.          The measure of Core Consumer Price Index(CPI) excludes    

            from the All-items CPI the effectof changes in indirect   

            taxes and eight of the mostvolatile components identified 

            by the Bank of Canada: fruit, fruitpreparations and nuts; 

            vegetables and vegetablepreparations; mortgage interest   

            cost; natural gas; fuel oil andother fuel; gasoline; inter-

            city transportation; and tobaccoproducts and smokers'     

            supplies. For additional informationon Core CPI, consult  

            the Bank of Canada website                                 

            (www.bankofcanada.ca/en/inflation/index.htm).              

 

--------------------------------------------------------------------------------

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

(2002=100)

____________________________________________________________________________

October

2008 to

                                Relative    NovemberNovember     October

                           importance(1)        2008        2009        2009

____________________________________________________________________________

                              Unadjusted  UnadjustedUnadjusted  Unadjusted

                           -------------  --------------------  ----------

% change

   

----------

Canada                         100.00(2)       114.1       115.2         0.1

Newfoundland and Labrador           1.27       114.3       115.6        -0.4

Prince Edward Island                0.35       116.9       119.1        -0.8

Nova Scotia                         2.56       115.0       117.0        -0.4

New Brunswick                       1.97       112.6       115.1         0.5

Québec                             21.05       112.4       114.3         0.5

Ontario                            41.22       113.5       114.6         0.2

Manitoba                            3.06       113.8       114.7         0.1

Saskatchewan                        2.64       116.7       117.6         0.3

Alberta                            11.43       121.6       122.6         0.1

British Columbia                   14.29       112.3       112.4        -0.6

Whitehorse                          0.06       114.6       113.9        -1.3

Yellowknife                         0.08       116.1       116.7         0.0

Iqaluit (Dec. 2002=100)             0.02       111.9       111.2         0.5

____________________________________________________________________________

_____________________________________

                             November

                              2008 to

                             November

                                 2009

_____________________________________

                           Unadjusted

                                    

                           ----------

                                    

                             % change

                                    

                           ----------

Canada                            1.0

Newfoundland and Labrador         1.1

Prince Edward Island              1.9

Nova Scotia                       1.7

New Brunswick                     2.2

Québec                            1.7

Ontario                           1.0

Manitoba                          0.8

Saskatchewan                      0.8

Alberta                           0.8

British Columbia                  0.1

Whitehorse                       -0.6

Yellowknife                       0.5

Iqaluit (Dec. 2002=100)          -0.6

_____________________________________

1.          2005 CPI basket weights at April 2007prices, Canada:      

            Effective May 2007. Detailedweights are available under   

            the Documentation section of                                

            survey 2301 (www.statcan.gc.ca/imdb-bmdi/index-eng.htm).   

2.          Figures may not add up to 100% due torounding.            

 

--------------------------------------------------------------------------------

Table: Consumer Price Index and majorcomponents

(2002=100)

____________________________________________________________________________

                                Relative   SeptemberOctober    November

                           importance(1)        2009        20092009

____________________________________________________________________________

                              Seasonally  SeasonallySeasonally  Seasonally

                                adjusted    adjustedadjusted    adjusted

                                                                     

                           -------------  --------------------  ----------

                                                                            

All-items                      100.00(2)       114.4       114.9       115.6

Food                               17.04       121.3       121.4       121.8

Shelter                            26.62       120.9       121.2       121.3

Household operations and

 furnishings                       11.10       107.7       108.0       108.6

Clothing and footwear               5.36        92.7        93.4        93.9

Transportation                     19.88       113.6       113.4       115.4

Health and personal care            4.73       113.6       113.0       113.3

Recreation, education

 and reading                       12.20       103.4       103.7       103.8

Alcoholic beverages and 

 tobacco products                   3.07       131.3       131.4       131.3

Special aggregates

All-items excluding food           82.96       113.5       113.5       114.0

All-items excluding food

 and energy                        73.57       111.6       111.8       111.9

All-items excluding

 eight of the most                                                          

 volatile components               82.71       112.5       112.8       113.1

Core CPI(3)                        82.71       113.9       114.2       114.4

____________________________________________________________________________

_________________________________________________

                            September     October

                                   to          to

                              October    November

                                 2009        2009

_________________________________________________

                           Seasonally  Seasonally

                             adjusted    adjusted

                           ----------  ----------

                             % change    % change

                           ----------  ----------

All-items                         0.4         0.6

Food                            0.1         0.3

Shelter                           0.2         0.1

Household operations and                        

 furnishings                      0.3         0.6

Clothing and footwear             0.8         0.5

Transportation                   -0.2         1.8

Health and personal care         -0.5         0.3

Recreation, education                           

 and reading                      0.3         0.1

Alcoholic beverages and                         

 tobacco products                 0.1        -0.1

Special aggregates                              

All-items excluding food          0.0         0.4

All-items excluding food                        

 and energy                       0.2         0.1

All-items excluding                              

 eight of the most                              

 volatile components              0.3         0.3

Core CPI(3)                       0.3         0.2

_________________________________________________

1.          2005 CPI basket weights at April 2007prices, Canada:      

            Effective May 2007. Detailedweights are available under   

            the Documentation section of                               

            survey 2301 (www.statcan.gc.ca/imdb-bmdi/index-eng.htm).   

2.          Figures may not add up to 100% due torounding.            

3.          The measure of Core Consumer PriceIndex (CPI) excludes    

            from the all-items CPI the effectof changes in indirect   

            taxes and eight of the mostvolatile components identified 

            by the Bank of Canada: fruit, fruitpreparations and nuts; 

            vegetables and vegetablepreparations; mortgage interest   

            cost; natural gas; fuel oil andother fuel; gasoline; inter-

            city transportation; and tobaccoproducts and smokers'     

            supplies. For additionalinformation on Core CPI, consult  

            the Bank of Canada website                                 

            (www.bankofcanada.ca/en/inflation/index.htm).              

 

--------------------------------------------------------------------------------

Canada's international transactions insecurities October 2009

 

 

Canadian securities continued to draw significant foreign investment inOctober. Non-residents acquired $5.8 billion during the month, mainly federalgovernment bonds. Non-residents have added $86.4 billion of Canadian securitiesto their portfolios so far in 2009, already exceeding any previous annualforeign investment.

 

Meanwhile, Canadians removed $4.2 billion from their holdings of foreignsecurities in October, divesting both debt and equity instruments. Thisfollowed a $4.7 billion divestment in September.

 

 

Strong non-resident demand for Canadianfederal government bonds

 

 

Foreign investors continued to adjust their holdings of Canadian debtsecurities to longer term instruments in October. They added $6.0 billion ofCanadian bonds to their portfolios, the largest inflow since May 2009, anddisposed of $1.6 billion of Canadian money market instruments.

 

This activity was largely comprised of the Canadian federal governmentsecurities. Non-residents acquired $4.5 billion of federal bonds throughsecondary markets in October, covering nearly all benchmark bonds. At the sametime, they reduced their holdings of federal paper by $1.9 billion, mainly dueto retirements.

 

Foreign investment in Canadian private corporate bonds was also sizableat $1.8 billion in October, and was dominated by secondary markets purchases.Bonds backed by mortgages and credit card receivables attracted the bulk of theforeign buying.

______________________________________________________________________

 

Note to readers

 

All values in this release are net transactions unless otherwise stated.

 

The data series on international security transactions cover portfoliotransactions in stocks, bonds and money market instruments for both Canadianand foreign issues.

 

Stocks include common and preferred equities, as well as warrants.

 

Debt securities include bonds and money market instruments.

 

Bonds have an original term to maturity of more than one year.

 

Money market instruments have an original term to maturity of one yearor less.

 

Government of Canada paper includes treasury bills and US-dollar Canadabills.