Consumer prices in Iqaluit rose twice as fast as Canada’s last year

Consumer prices in Iqaluit, Yellowknife and Whitehorse rose twice as much as in the rest of the country last year, Statistics Canada reported Feb. 22 in its annual consumer price index report.

Overall, the consumer price index, or CPI, rose 0.5 per cent in the 12 months to January 2013, following a 0.8 per cent gain in December.

“This slower increase was led by year-over-year price declines for clothing and smaller price gains for food purchased from stores,” a StatsCan document said.

In Iqaluit, the CPI rose 1.1 per cent from Jan. 2012 to Jan. 2013. In Yellowknife that number was 0.8 per cent, and in Whitehorse it rose by 1.7 per cent.

So, the average increase for all of Canada was 0.5 per cent — half of the increase that Iqaluit experienced.

The CPI indicates percentage increases and changes in consumer prices experienced by Canadians. The CPI is obtained by comparing over time the cost of a fixed basket of goods and services purchased by consumers.

The main factor in the smaller increase in the CPI was gasoline prices, which fell 1.8 per cent year-over-year in January after rising 1.0 per cent in December.

Since the basket contains goods and services of unchanging or equivalent quantity and quality, the index reflects only pure price change, StatsCan said.

Consumer prices rose in six of the eight major components in the 12 months to January. The exceptions included transportation, clothing and footwear.