Statistics Canada is changing the way it measures inflation to put more emphasis on food and gasoline prices.
The Ottawa-based statistics agency has unveiled new weightings for the basket of goods and services in its Consumer Price Index (CPI), putting more focus on changes to the price of food and gasoline.
The reweighting will apply to the May inflation reading that Statistics Canada is scheduled to release on June 27 this year.
The government agency said the inflation rebalancing is designed to take into account the continuing recovery of Canada’s economy following the Covid-19 pandemic.
Heavy government spending during the pandemic and supply chain disruptions helped push Canada’s inflation rate to a 40-year high of 8.1% in June 2022. It has since declined to 4.4%.
Gasoline prices, pushed higher by increased demand and Russia's invasion of Ukraine, will now account for 4.27% of Statistics Canada’s overall inflation measure, up from 3.47% previously.
The food component will now account for 16.13% of StatsCan’s inflation gauge, up from 15.75%.
The adjusted food measure reflects increased food sales at restaurants as lockdown measures have been lifted across Canada, said the agency.
Other changes to the inflation calculation include the weighting for the shelter component being dropped to 28.22% from 29.67% previously, and DVD players being completely removed from the inflation basket as they have largely become obsolete.
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