Manitoba’s inflation rate up, but still below national average

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This article was published 17/08/2017 (2442 days ago), so information in it may no longer be current.

Manitoba’s annual inflation rate crept back up in July, rising to 0.9 per cent from a mere 0.2 per cent in June.

In its latest monthly Consumer Price Index report released on Friday, Statistics Canada said Manitoba went from having the lowest annual inflation rate in the country in June, to being tied with two other provinces — Nova Scotia and Quebec — for the fifth-lowest in July.

But even with the bump up, Manitoba’s inflation rate was still below the national average rate of 1.2 per cent.

Some of the consumer items which cost more last month in Manitoba than in the previous month were fresh or frozen pork (up 11 per cent), footwear ( up 3.6 per cent) and cereal products excluding baby food (up 3.2 per cent).

Items that dropped in price included gasoline (down 4.1 per cent), telephone services (down 3.0 per cent) and fresh vegetables (down 1.9 per cent).

While fresh-vegetable prices declined from June to July, they were still 11.4 per cent higher than in July of last year, the data shows. Other local items that cost more last month than in July 2016 were water (up 10.7 per cent), homeowners’ replacement cost (up 4.6 per cent) and property taxes and other special charges (up 3.5 per cent).

Statistics Canada said inflation also picked up its pace last month In Canada for the first time since January as the annualized rate accelerated to 1.2 per cent. The latest inflation number increased from its June reading of one per cent, which had represented the data point’s lowest mark in almost two years.

The higher price of gasoline, up 4.6 per cent in July compared to a year earlier, was among the biggest contributors behind the increase.

Upward pressure also came from year-over-year price increases of 9.7 per cent for natural gas, 8.5 per cent for traveller accommodation and 4.1 per cent for homeowner’s replacement costs.

Among the downward pressures: the cost of electricity, which the report said saw its biggest drop in 14 years due in large part to legislated price declines in Ontario.

Lower prices for video equipment, furniture and Internet access also weighed on the overall inflation number.

The annual rate saw its first increase since it peaked in January at 2.1 per cent, which was close to the Bank of Canada’s ideal target of 2.0 per cent.

Some experts suggested that the central bank might hold off hiking its interest rate because of weak inflation — the bank raised its key rate slightly last month and argued the recent softness was mostly temporary.

Statistics Canada’s inflation report on Friday also said two of the central bank’s three measures for core inflation, which omit volatile items like gas, saw slight increases in July, while the other one was unchanged.

Those underlying readings, watched closely by the inflation-targeting bank in the lead-up to rate decisions, were 1.3, 1.4 and 1.7 per cent.

— Staff/Canadian Press