Canadian Consumer Price Index Up In October

The Consumer Price Index (CPI) increased 1.4% on a year-over-year basis in October, following a 1.6% gain in September. The all-items excluding gasoline index rose 1.3% year over year in October, after increasing 1.1% in September.
12-month change in the major components
Prices were up in seven of the eight major CPI components in the 12 months to October, with the transportation and shelter indexes contributing the most to the increase. The clothing and footwear index declined on a year-over-year basis.
Transportation prices rose 3.0% on a year-over-year basis in October, following a 3.8% increase in September. This deceleration was led by gasoline prices, which increased 6.5% year over year in October after increasing 14.1% the previous month in the aftermath of Hurricane Harvey. At the same time, the purchase of passenger vehicles index rose 1.5% month over month in October, providing the impetus for the largest year-over-year gain in this index since March 2017.
The recreation, education and reading index increased 1.5% year over year in October, following a 2.1% increase in September. Prices for travel tours contributed the most to this deceleration, increasing 4.4% in the 12 months to October after a 7.3% gain in September. The recreational services index increased 5.2% on a year-over-year basis in October, following a 14.7% increase in September. Meanwhile, prices for digital computing equipment and devices (-4.4%) declined at a slower rate on a year-over-year basis in October than in September.
Consumer prices for household operations, furnishings and equipment rose 0.2% in the 12 months to October after declining year over year for three consecutive months. Prices for telephone services increased 3.9% on a monthly basis, leading to a 0.1% year-over-year decline in October following a 3.1% decrease in September. Prices for child care services increased 2.6% on a year-over-year basis in October. Additionally, the tools and other household equipment index recorded a smaller year-over-year increase for the month than was seen in September.