I was mumbling about CPI, M3, inflation etc., a while back, and came across a site that discusses how CPI was rejigged. According to the author(s), it is understated by about 7%. There are all kinds of fallacious arguments about quality and safety being better, but I have never bought them.
The article is discussing the US position, but it is surely applicable to Canada.
A couple of choice quotes from the article;
Inflation, as reported by the Consumer Price Index (CPI) is understated by roughly 7% per year.
In recent decades, however, the reporting system increasingly succumbed to pressures from miscreant politicians, who were and are intent upon stealing income from social security recipients, without ever taking the issue of reduced entitlement payments before the public or Congress for approval.
The Boskin/Greenspan argument was that when steak got too expensive, the consumer would substitute hamburger for the steak, and that the inflation measure should reflect the costs tied to buying hamburger versus steak, instead of steak versus steak. Of course, replacing hamburger for steak in the calculations would reduce the inflation rate, but it represented the rate of inflation in terms of maintaining a declining standard of living. Cost of living was being replaced by the cost of survival. The old system told you how much you had to increase your income in order to keep buying steak. The new system promised you hamburger, and then dog food, perhaps, after that.
It's worth reading, and exploring the whole site.
Edit: Thanks to casual observer for the link. I couldn't remember how I got there, and casual had posted the link on the previous thread to this one.