Rates and Statistics
Price Indexes
Effect of changes in indirect taxes on the CPI
The Bank of Canada estimates that the effect of changes to indirect taxes on the total CPI and on the subset of the CPI that excludes the eight most volatile components in April was 0.000 and -0.001 percentage points respectively. These effects result from a decrease in taxes on hotel rooms in Alberta, an increase of tobacco taxes in Newfoundland and Labrador, and an increase on gas and tire taxes in PEI.
The contribution of changes in indirect taxes to year-over-year variations in the total CPI and in the core CPI in April was 0.04 percentage points and -0.01 percentage point, respectively.
The Bank of Canada's measure of core inflation excludes the eight 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 Friday, 20 May.