Last month for the first time in 5 months inflation has begun to increase; this was the longest period of deflation in Canadian history since 1953. A positive jump to 0.1% happened in the year-to-year inflation rates which was up from the -0.9% Canadians had in September. No matter how small one-tenth of a per cent inflation appears to be, questions about the future still arise.
So what does this signify?
Giving no figures can sometimes be an improvement than the limited amount of information these figures represent. If you examine month-to-month inflation, you will find that prices in October 2009 were actually 0.1% lower than in September 2009. Are costs going up or are costs coming down is the question? If you have a look at the price index some of the clarifications can be located here.
In October, observing the 8 major price index elements such as shelter and clothing, 6 of them saw an improvement. In comparison to last years oil prices there was a marked shrinkage between this years and last years costs. Prices for oil are roughly the $80 mark but after the summer peak last year prices in October were already dropping. Inflation increased by 0.3%, if you take out other volatile energy-related components, which means more of our hard earned dollars on consumer items. Analyzing inflation rates across the Canadian provinces, with a rise from -1.1% to 0.2%, Ontario saw the greatest rise.
For an insight into the likely future progression of inflation within Canada, read our full article Inflation Is Back.