Canada Consumer Price Index (CPI) y/y

Canada Consumer Price Index y/y reflects the change in prices of a fixed basket of goods and services from the consumer perspective in the reported month compared to the same month of the previous year. The basket contains goods and services of unchanging or equivalent quality and quantity, therefore the index shows only a pure price change.

Each element in the basket has a certain weight in the index calculation, depending on the share of spendings on its consumption. The basket is revised every two years. Public goods and services provided by governments, and for which there is no market price, are excluded from the basket. For example, this includes health services received through the health insurance system and some types of insurance premiums. However, drugs, dental care and eye care services are included. Alcohol and tobacco are included in the calculation, because they represent a significant expenditure.

The statistics does not include people living in collective households (prison inmates, chronic care patients in hospital and nursing homes), those living on Indian reserves and official representatives of foreign countries.

The index is calculated in relation to the reference period (currently this is the year 2002), for which the value is equal to 100.

The consumer price index is used as an indicator of the change in the overall level of consumer inflation. It is used in the adjustment of contracted payments, such as wages, rents leases and social allowances. It is also used as a deflator of various economic aggregates. The Bank of Canada uses the CPI to monitor its monetary policies. Analysts and economists use the CPI for analysis of the causes and effects of inflation.

The indicator growth can have a positive effect on CAD quotes.