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Why is there a difference between the annual inflation rate determined by Statistics Canada and the pension indexing rate?

April 26, 2017annual difference indexing inflation Pension rate statistics

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Why is there a difference between the annual inflation rate determined by Statistics Canada and the pension indexing rate?

1 Answer

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The methods used to calculate the annual rate of inflation as published by Statistics Canada and the pension indexing rate are different. We have already explained in the response to question 3 the way in which the indexing is calculated for the pensions of retired federal employees. Briefly, this calculation consists of comparing the average consumer price index (CPI) of the current year with the average CPI of the previous year.