October CPI is published

The October CPI figure (136.3 based on 1992 =100) was released today indicating that the CPI went down compared to the previous month (137.7 in September). Recent economic events have resulted in an unpredictable economic landscape. It is no longer certain that the CPI for 2008 (134.62) was underforecast by the PMPRB. However, if the November and December CPI figures drop by the same percent (1.02%) as seen in October, the full year CPI will still be above the figure forecast by PMPRB.

As explained in the October 2005 Newsletter the PMPRB will rely on the higher of the actual and forecast CPI for the calculation of excess revenues in 2008. However, the MNE calculated with the actual 2008 CPI will be used for the calculation of future MNEs.

Source: Statistics Canada PMPRB Newsletter April 2007 page 7