Statistics Canada to set to change how it estimates its cellular price index. A note on its Consumer Price Index (CPI) June 2024 website published last week said there are going to be “upcoming enhancements”, specifically a “new approach to estimating the cellular services price index.”
“The cellular services price index will be updated with an enhanced methodology and new data sources in the coming months. A technical paper describing the new approach will be available on August 20,” explained Statistics Canada, without elaborating further.
CPI data for June 2024 saw a “smaller decline for cellular services in June (-12.8%) compared with May (-19.4%)”, said StatsCan.
While the telecom industry has touted CPI data for cellular services as falling, does that result in lower prices? CPI data is based on tracking the price of data buckets and the cost per gigabyte, and not average monthly bills. We’ve seen how wireless carriers continue to dole out exorbitant amounts of free data bonuses, which can skew data.
“Bell, Rogers and Telus are aware of how Statscan arrives at its results – and they’re also acutely aware that the federal government would very much like to proclaim its 2015 election promise to lower telecom prices as fulfilled, not to mention take credit for lowering inflation. So is it any wonder that they’re advertising prices that show up as statistically lower, but not where it really counts?”, wrote TekSaavy earlier this year.
At the end of the day, average revenue per user (ARPU) metrics, which are what consumers are willing to pay for their monthly bills have remained steady. Let’s wait and see how StatsCan will present its cellular prices index next month.
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A couple of months back, I was paying $30 for 30GB of 4G data. Then the provider 'gave' me 60GB for the same price – $30. So that makes my service cheaper, right? Insofar as I know I never use close to even 30 – let alone 60GB, all I know for certain is that my monthly bill does not drop in price. StatsCan' methodology has always been flawed. Prices to consumers go up – hidden by StatsCan figures that allow providers to avoid government intervention. I can't see government actually doing anything about it, but maybe new methodology will actually highlight what users already know. Gouging.
If the current measured use contributed to bringing down the current inflation number to 2.7% and it was a large portion of the basket, then that would mean our current inflation rate is substantially higher then they have been claiming and, knowingly so…
I think you answered your own question….smoke and mirrors.
All the data that the government puts out is selected or massaged to convey that "feel good" message, when in reality people struggle.
Mobile and internet connectivity costs should be in line with the OECD average and we're so far from it.