High Fuel Prices Keep Inflation Rate Up
SAINT JOHN — Canada’s inflation rate remained unchanged in October after three months of declines, according to Statistics Canada.
The Consumer Price Index sat at 6.9 percent year-over-year in October, similar to what the country saw in September. Faster price growth for gas and mortgage interest put upward pressure on CPI, according to the latest report.
On a monthly basis, gasoline prices increased 9.2 percent in October following a decrease of 7.4 percent in September.
“The announcement of future oil production cuts by the Organization of the Petroleum Exporting Countries Plus and a weaker Canadian dollar contributed to higher gasoline prices for Canadian consumers,” said StatCan.
On a year-over-year basis, gasoline prices rose 17.8 percent in October following a 13.2 percent increase in September.
Offsetting the upward pressure was slower price growth on a year-over-year basis for natural gas and groceries, particularly prices for fruit, vegetables, and meat.
Prices for food rose 10.1 percent on a year-over-year basis in October compared with 10.3 percent in September.
Despite the slowdown in price growth, prices for food purchased from stores continued to increase at a faster rate year over year than overall inflation for the eleventh consecutive month.
Dry or fresh pasta was up nearly 45 percent, margarine climbed 40 percent, lettuce was up 30 percent, rice and rice-based mixes increased nearly 15 percent, and soup was up 18 percent.
StatCan said the higher interest rate environment pushed up lending rates in the Mortgage Interest Cost Index. Mortgage interest costs increased 11.4 percent on a year-over-year basis, the highest increase since February 1991.
Atlantic Canadians paid more for fuel oil and other fuels than Canadians living in other provinces on a year-over-year basis. Prices increased by nearly 68 percent in Nova Scotia and 51 percent in New Brunswick.
“Fuel oil is more commonly used for heating homes in Atlantic Canada, and as such, contribute more to price change in these provinces compared with others,” said the report.
On a provincial breakdown, four provinces saw their inflation rate grow slower than the national average, including Québec (6.4 percent), Ontario (6.5 percent), Newfoundland and Labrador (6.5 percent) and Alberta (6.8 percent).
Prince Edward Island saw the highest increase (8.7 percent), followed by Manitoba (8.4 percent), Saskatchewan (8.0 percent), British Columbia (7.8 percent), Nova Scotia (7.7 percent) and New Brunswick (6.9 percent).
You can view the full report from Statistics Canada by clicking here.
Brad Perry is the Regional News Director for New Brunswick at Acadia Broadcasting, Huddle content partners.