Annual inflation rate lower in Alberta than the Canadian average

Energy prices fell across the country in June, led by big declines in Alberta

Mario ToneguzziThe annual rate of inflation in Alberta was lower than the Canadian average in June, according to data released on Wednesday by Statistics Canada.

The federal agency said the consumer price index (CPI) in the province rose 1.4 per cent year over year, down from a 2.3 per cent increase in May.

Across Canada, the CPI rose two per cent in June on an annual basis, following a 2.4 per cent hike in May.

One of the big reasons for the drop in inflation was lower energy prices.

“Among the provinces, energy prices fell the most year over year in Alberta (-8.4 per cent) in June. Gasoline prices decreased 17.9 per cent in the province, following a decline in global oil prices and the removal of carbon pricing. Natural gas prices fell 3.5 per cent in Alberta due in part to a supply glut related to pipeline maintenance,” explained StatsCan.

Across Canada, energy prices fell 4.1 per cent year over year in June, following a 0.1 per cent decrease in May. Consumers paid less for gasoline (-9.2 per cent) and fuel oil and other fuels (-4.1 per cent). This was due in part to falling oil prices amid rising fuel inventories in the United States and the elimination of carbon pricing in Alberta at the end of May, said the federal agency.

“The purchase of passenger vehicles index rose 3.0 per cent on a year-over-year basis in June, following a 4.2 per cent increase in May. The year-over-year increase in the food index (+3.5 per cent) was led by higher prices for fresh vegetables (+17.3 per cent) in June. This increase, the largest since January 2016, was attributable in part to inclement weather in agricultural regions,” it said.

© Calgary’s Business

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