Statistics Canada has introduced a new approach to tracking cellular service prices, aiming to provide a more accurate picture of what Canadians pay for wireless services.
Back in July, we told you StatsCan was set to change how it tracked wireless pricing in Canada, and now we have some more details.
The updated Cellular Services Price Index (CSPI) now combines transaction data from major wireless service providers (WSPs) with traditional web-collected data, creating a “hybrid” index that better reflects real market conditions.
The CSPI measures monthly price changes for services like calls, texts, and data, while excluding extra fees such as activation or roaming charges. Statistics Canada has been working with service providers to gather detailed data on various cellular plans across Canada, improving the quality of the index by adding information on plan features and subscriber counts.
This updated method allows StatsCan to produce a more representative index by using market share data to weigh the prices collected from wireless companies.
The shift is part of StatsCan’s ongoing effort to modernize its CPI components and keep pace with the evolving telecommunications landscape it says. By leveraging transaction data, the agency aims to improve the accuracy of the CSPI and provide clearer insights into price trends affecting Canadian consumers, who have some of the highest cellphone plan prices in the world.
But what’s tricky is here will data be provided that includes plans not available on the ‘Big 3’ websites? Such as ‘winback’ plans and other promo plans unavailable to new customers. Also, when wireless incumbents dole out extra data for free, that also skews pricing.
The CPI rose 2.0% year-over-year in August, marking the slowest increase since February 2021 and down from 2.5% in July 2024. The slowdown in inflation was partly driven by lower gasoline prices and base-year effects. Excluding gasoline, the CPI increased 2.2% in August, compared to 2.5% in July. Mortgage interest costs and rent continued to be the largest contributors to the CPI rise in August.
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Can you provide the link to access StatsCan new tracking method?