Winnipeg Free Press - ONLINE EDITION

Manitoba's inflation rate still high: report

  • Print

Manitoba’s annual inflation rate remains stubbornly high compared to most other provinces, although relatively tame by historical standards.

Statistics Canada’s latest monthly consumer price index report, which was released today, pegs Manitoba’s annual inflation rate at 1.8 per cent in April.

That left it tied with Prince Edward Island for the highest annual rate in the country. It was also more than four times higher than Canada’s annual inflation rate for April of 0.4 per cent. The remaining provinces had rates ranging from minus 0.8 per cent in British Columbia to 1.3 per cent in Alberta.

The good news was that April’s rate was still an improvement from March, when Manitoba had by far the highest annual rate in the country at 2.3 per cent.

As has been the case for several months, some of the consumer items that have seen some of the biggest increases in cost over the past 12 months are passenger vehicle registration fees (up 29.4 per cent) and homeowners’ home and mortgage insurance (up 13.5 per cent).

Two other notable examples in April were cigarettes (up 8.4 per cent) and telephone services (up 8.3 per cent).

Vehicle registration fees and homeowners’ home and mortgage insurance are costlier this year because of the Selinger government’s decision in last year’s provincial budget to boost vehicle registration fees by $35 and extend the provincial sales tax to include a number of previously exempt items, including home and mortgage insurance.

This year’s budget, unveiled last month, also included a hike in provincial cigarette taxes.

A steep decline in the price of gasoline last month pushed Canada’s inflation rate down to its lowest level since October 2009. It was a bigger drop than analysts had expected.

Gasoline prices at the pump in April were down six per cent from a year earlier, also the largest year-to-year decline since October 2009.

On a month-to-month basis, consumer prices also fell by a bigger than expected 0.4 per cent. Analysts had been looking for a decline of 0.2 per cent month-to-month, according to a consensus estimate.

The steep drop-off in inflation will likely bring to a halt any talk about the Bank of Canada needing to start raising interest rates, given that inflation is far from the bank’s ideal of two per cent annual inflation and below low end of its target range.

Two provinces — British Columbia and New Brunswick — fell into negative inflation territory, registering overall price decreases of 0.8 per cent and 0.2 per cent respectively.

Even the central bank’s core inflation index, which excludes volatile items such as gasoline, is getting closer to falling out of the desired range of one-to-three per cent, after dropping to 1.1 per cent in April from 1.3 per cent the previous month.

Analysts had expected the core rate to be 1.2 per cent.

— Staff/Canadian Press

Fact Check

Fact Check

Have you found an error, or know of something we’ve missed in one of our stories?
Please use the form below and let us know.

* Required
  • Please post the headline of the story or the title of the video with the error.

  • Please post exactly what was wrong with the story.

  • Please indicate your source for the correct information.

  • Yes

    No

  • This will only be used to contact you if we have a question about your submission, it will not be used to identify you or be published.

  • Cancel

Having problems with the form?

Contact Us Directly
  • Print

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

You can comment on most stories on winnipegfreepress.com. You can also agree or disagree with other comments. All you need to do is be a Winnipeg Free Press print or e-edition subscriber to join the conversation and give your feedback.

Have Your Say

New to commenting? Check out our Frequently Asked Questions.

Have Your Say

Comments are open to Winnipeg Free Press print or e-edition subscribers only. why?

Have Your Say

Comments are open to Winnipeg Free Press Subscribers only. why?

The Winnipeg Free Press does not necessarily endorse any of the views posted. By submitting your comment, you agree to our Terms and Conditions. These terms were revised effective April 16, 2010.

letters

Make text: Larger | Smaller

LATEST VIDEO

Drew Willy on his team's win over Alouettes

View more like this

Photo Store Gallery

  • A golfer looks for his ball in a water trap at John Blumberg Golf Course Friday afternoon as geese and goslings run for safety- See Joe Bryksa’s 30 day goose challenge- Day 24– June 15, 2012   (JOE BRYKSA / WINNIPEG FREE PRESS)
  • JJOE.BRYKSA@FREEPRESS.MB.CA Local-Postcard  Day-Horror frost and fog created a most beautiful setting at Assiniboine Park Thursday morning in WInnipeg- Enviroent Canada says the fog will lifet this morning and will see a high of -7C-  JOE BRYKSA/WINNIPEG FREE PRESS- Feb 18, 2010

View More Gallery Photos

Poll

What do you think of the new school-zone speed limit?

View Results

View Related Story

Ads by Google