Ontario inflation is beginning to heat up. As recently as May, the year over year increase in the Consumer Price Index was a mere 0.49% . Today's data for July indicates that Ontario prices have gone up 1.65% since last year . While this is partly due to a dip in prices in June and July of 2012, prices also went up significantly in June and July of 2013. Since May 2013, the CPI has increased from 123.0 to 123.4. On an annualized basis, that would imply an annual inflation increase of 1.91% by May 2014. Gasoline prices led the way with an annual increase of 5.5% in Ontario (6.1% across Canada). Hourly wages and inflation Average hourly wages in Ontario for July were up 1.5% compared to a year earlier. In other words, wages are falling slightly behind inflation. This too is a bit of a change since May. Although hourly average wages were up a bit less in May -- 1.15% over the year -- that hourly wage increase was still significantly ahead of the 0.49% annual
Notes from Leftwords -- Doug Allan