Rates and Statistics
Price Indexes
Effect of changes in indirect taxes on the CPI (Corrected)
The Bank of Canada estimates that the effect of changes to indirect taxes in July was -0.5 percentage points for total CPI and -0.5 percentage points for the subset of the CPI that excludes eight of the most volatile components. This results mainly from the reduction of the GST and an increase in excise taxes for tobacco products and alcoholic beverages.
The contribution of changes in indirect taxes to year-over-year variations in the total CPI and for the subset of the CPI that excludes eight of the most volatile components in July was -0.5 percentage points and -0.5 percentage points, respectively.
The Bank of Canada's measure of core inflation excludes eight of the components of the CPI basket that display the greatest volatility, as well as the effect of changes in indirect taxes on the remaining components. The latest data on core inflation will be released on the Bank's Web site at 8:30 a.m. on Tuesday, 22 August.