When they give monthly inflation figures, is that how much it’s gone up that month, or averaging across the year?

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Each month you’ll get an article headline like “Inflation at 3% in July” or whatever. Does that mean prices went up 3% in July, or does it mean across this year the average after July is 3%? I know prices are going up lots lately but if it’s 3% each month that’s 36% a year? Please explain to my silly little brain.

In: Economics

6 Answers

Anonymous 0 Comments

the most commonly used calculation is the 12-month % change of a list of the same items that cover….

Food

Shelter

Household operations, furnishings and equipment

Clothing and footwear

Transportation

Health and personal care

Recreation, education and reading,

Alcoholic beverages, tobacco products and recreational cannabis

The same items are purchased in different provinces and locations across Canada and then weighted when calculating the national number…I think Ontario represents 40% on household spending.

Good details here

https://www.statcan.gc.ca/en/subjects-start/prices_and_price_indexes/consumer_price_indexes/faq

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