Statistics Canada on Tuesday updated the basket weights for the goods and services it uses to determine inflation, increasing the influence of the shelter and transportation components.
The updated weights, based on consumer spending in 2024, will be used to calculate the consumer price index starting with the reading for May 2025, which will be released next week.
The shelter component now makes up 29.12% of the basket, up from 28.57%, driven by mortgage interest costs and rent.
The transportation group’s share rose to 17.29% from 16.78%, due to an increase in the weight for passenger vehicles.
The clothing and footwear component decreased to 4.4% from 4.7%, while the recreation, education and reading category slipped to 10.16% from 10.42%.
Each item in the basket of goods and services is assigned a weight proportional to its share of total spending by Canadian households. The greater the weight, the more it influences the overall inflation reading.