What is CPI?
CPI is a key measure of inflation. Find out how CPI is determined and what it tells us about the cost of living in Canada.
Why are mortgages so expensive in Canada?
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Ratehub.ca
The Consumer Price Index (CPI) is a benchmark measure of changes in consumer prices created and maintained by Statistics Canada. It’s commonly referred to as a measure of inflation because prices tend to increase more often than they decrease over time.
CPI is calculated using the cost of a basket of goods and services designed to reflect the everyday expenses of average Canadians. These are divided into eight key categories:
- Food
- Shelter
- Household operations
- Furnishings and equipment
- Clothing and footwear
- Transportation
- Health and personal care
- Recreation
- Education and reading
- Alcohol, tobacco and recreational cannabis
The total cost of this basket is calculated and compared to the cost in previous time periods, including monthly or annually. Statistics Canada regularly publishes CPI data for Canada, each province, the capital cities of the three and territories, and other select cities.
While many countries use consumer price indexes to measure changes in consumer prices, calculations vary. As a result, inflation rates published by different countries are not directly comparable.
Read more on inflation:
- What is inflation?
How does inflation impact Canadians’ finances? What is the current inflation rate in Canada? - What does high inflation mean for your retirement savings?
How persistently high inflation affects investments, and what you can do to minimize the impact on your retirement savings. - A contrarian approach to inflation, interest rates and the markets Inflation and interest rates are likely to rise in 2022. Here’s how to reposition portfolios in response.
- Guide to inflation: Price changes, the pandemic and your pocketbook
This guide will help you understand what inflation is, how it’s calculated, and what it means for your personal finances.
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