Finance

Economic and Project Analysis

Posted: April 2017
Consumer Price Index Commentary, January-December 2016
Next due: late June 2017

Consumer Inflation Averaged 2.7% in 2016

According to the Consumer Price Index (CPI) released by Statistics Canada, consumers paid 2.7% more for goods and services in 2016 compared to 2015. Prices in Newfoundland and Labrador in 2016 were impacted by the 2 percentage point increase in the HST on July 1st as well as changes in other consumer taxes, effective June/July 2016.

Altogether, Energy prices remained relatively stable (up 0.9%). Declines in prices for Fuel oil and other fuels (due to lower crude oil prices relative to 2015) and Electricity (rate stabilization adjustment) were offset by higher Gasoline prices (increased taxes). Overall consumer prices are 3.0% higher when excluding the Energy category.

Noticeable increases include Household operations, furnishings and equipment (up 4.8%) and Alcoholic beverages and tobacco products (up 4.7%). Services increased by 3.5% and Goods increased by 2.1%.

Nationally, inflation was 1.4% for the year 2016.

The Department of Finance's March 2017 forecast predicts inflation to average 2.9% in 2017.

Year-Over-Year Change in CPI
2016 vs. 2015

Consumer Price Index Chart, Year-to-date

Statistical Reference: For the latest in consumer price index statistics visit the Newfoundland & Labrador Statistics Agency site and check the release dates on the Statistics Canada site.


 
Economic and Project Analysis Division, Department of Finance - (709) 729-3255 - infoera@gov.nl.ca

 
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