CPI February 2024 - up 2.8%

[jjp297]

https://www150.statcan.gc.ca/n1/daily-quotidien/240319/dq240319a-eng.htm?HPA=1&indid=3665-1&indgeo=0

StatsCan wil be making a post too with more detail.

Edit: Statscan has made their post.

https://www.reddit.com/r/PersonalFinanceCanada/comments/1bikdkj

This thread will be locked. Please refer to their thread.

 

[carlagrimes]

@jjp297

The Consumer Price Index (CPI) rose 2.8% on a year-over-year basis in February, down from a 2.9% gain in January. Notable contributors to the deceleration included the indexes for cellular services, food purchased from stores, and Internet access services. Offsetting the deceleration was a year-over-year increase in gasoline prices, which rose 0.8% in February, following a 4.0% decline in January.

so this is not only oil and gas price going down, it actually goes down from other sectors including food purchased from stores.

 

[delicatedan]

@carlagrimes Gas prices rose in February, and it came in at 2.8% despite that.

 

[mike533]

@carlagrimes If you read into it, basically everything but housing is dropping. And housing is increasing because of interest rates.

Interest rates are really giving the economy a whipping right now. I'm hopeful for cuts, and soon.

Edit: why all the downvotes? The latest CPI shows food costs as flat. Communications, clothing, alcohol, durable goods, and furniture are declining in price, and most other things are increasing only slightly. The only major gains are in gasoline and housing costs.

 

[christbearer77]

@jjp297 Good news for those of us hoping for a rate cut.

April is likely too early but we’re on track for a cut in June if the numbers persist like this.

 

[utay62]

@christbearer77 Yep. 5 of the last 6 months now have seen inflation below the 20-year historical average of their respective months (November being the sole exception). If, going forward, the months simply matched the 20-year average, here is what inflation would look like over the rest of 2024:

Inflation

Mar-24
2.7%

Apr-24
2.3%

May-24
2.4%

Jun-24
2.4%

Jul-24
1.9%

Aug-24
1.6%

Sep-24
1.7%

Oct-24
1.8%

Nov-24
1.7%

Dec-24
1.7%

And of course, if these future months continued to come in below the historical average, inflation would be even lower than this. Rate cuts are likely coming sooner than many people expect.

For further context, if the past 6 months had matched the historical average instead of being well below it, inflation would be at 3.4% right now.

 

[djsciple]

@jjp297 Keep interest rates high

 

[rafa83]

@jjp297 Its only 0.1% lower… relax. Rates aren’t going to 2.5% probably until theres another pandemic

 

[resjudicata]

@jjp297 Shelter the big driver. Gas prices easing up helped lower it. With gas prices rising, and likely to continue to rise, we could be heading over 3% very shortly. The prospects of rate cuts in this environment are iffy.

 

[resjudicata]

Everyone was shouting it would be going back up over 3% TODAY due to gas prices. And it went down instead...

 

[gcjohnstone]

@resjudicata Look at all those people lining up for the LCBO job thats all over social media. Its not the home owners, its the job seekers that are desperately needing the rate cuts.

 

[alien444]

@gcjohnstone Hopefully it means the LCBO can cut labour costs and return more to the government of Ontario.

 

[ruthiebabe]

@alien444 ooooof bad take

 

[joakeem]

@resjudicata Math is not mathing

 

[resjudicata]

@jjp297 Made up numbers. Reality is very different.

 

[alien444]

@jjp297 Might get a rate cut as long as wages do not continue to explode.

 

[zermel]

@alien444 Wages exploded?
Dang, guess I missed it