Maritimes Experiencing Highest Inflation In Canada
HALIFAX – Maritime provinces experienced the highest inflation in the country in November.
The cost of living in Nova Scotia, New Brunswick, and PEI rose at a rate well above the national average last month, driven in large part by more expensive rent and home heating costs.
Statistics Canada says the consumer price index (which measures inflation) in Canada rose by 6.8 percent last month compared to November of 2021. But, in the Maritimes, the year-over-year inflation rate was as much as three percentage points higher.
Prince Edward Island saw the worst inflation in the county last month as its CPI rose by 9.7 percent. Meanwhile, Nova Scotia saw inflation hit 8.6 percent and inflation in New Brunswick was 7.8 percent.
Statistics Canada says Maritimers were hit especially hard by spiking fuel costs because fuel is a common source of home heating in the region.
Across the rest of the country, the 6.8 percent rise in inflation was driven by the spiking costs of mortgage rates and rent. Statistics Canada says those fast-growing costs were more than enough to offset slower price growth for gasoline and furniture.
Last month, the agency says, the price of gas across the country dropped by 3.6 percent, largely thanks to price declines in Western Canada. Those declines were welcome after gas prices spiked by more than nine percent in October.
Meanwhile, food prices rose by a staggering 11.4 percent year-over-year in November. That followed an 11 percent rise in October.
StatsCan says food inflation remains “broad-based” and that food prices have outpaced general inflation every month for the last year.
Finally, the cost of housing continued to rise significantly.
StatsCan says the prices for what it calls “shelter” rose by 7.2 percent in November. That faster, year-over-year pace was mainly due to cost pressures from higher interest rates and “rent indexes.”
Mortgage interest was up 14.5 percent in November, the largest increase since February of 1983.
Rent, meanwhile, rose 5.9 percent in November. StatsCan says the higher prices come from “a higher interest rate environment, which may create barriers to homeownership.”
Trevor Nichols is Huddle’s editor, based in Halifax. Send him your feedback and story ideas: [email protected].