Cost of living in Manitoba rising at snail’s pace

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This article was published 20/03/2015 (4029 days ago), so information in it may no longer be current.

The cost of living in Manitoba continues to increase at its slowest pace in more than four years.

Statistics Canada data released today showing Manitoba’s annual inflation rate continued to hover at 0.7 per cent in February. That’s unchanged from January, when it fell to its lowest level since September 20110 — 0.5 per cent.

The agency said cheaper gasoline once again played a big role in keeping inflation low. Gas prices in Manitoba were down 20 per cent from a year earlier.

Another consumer item that cost a lot less was fuel oil and other oils. Those prices were down 22.7 per cent from a year earlier.

Other products that have dropped in price over the same 12-month period are home entertainment equipment, parts and services — down 6.9 per cent — and recreational equipment and services (excluding recreational vehicles), which were down 3.2 per cent.

But on the flip side of the coin, prices for some food items continued on a tear last month, in part because of the dramatic decline in the value of the Canadian dollar.

Fresh or frozen beef was 25 per cent more expensive than a year earlier, furniture was up 11.5 per cent, internet access services were 9.3 per cent higher, and footwear cost 7.7 per cent more, the Statistics Canada data shows.

Canada’s annual inflation rate also increased at the same pace for the second month in a row, as the consumer price index for February rose just 1.0 per cent compared with a year ago.

The agency found cheaper gas once again played a big role in keeping inflation low because the cost of items in almost every category climbed over the same 12-month period.

It said gasoline prices in Canada were down 21.8 per cent, while fuel oil tumbled 23.4 per cent.

To demonstrate the inflation-dampening effect of lower pump prices, the report noted the inflation rate would have increased to 2.2 per cent on a year-over-year basis in February if gasoline had been excluded.

Still, Statistics Canada said February’s month-to-month gasoline price index registered a gain of 9.4 per cent compared to January. It said the increase followed seven straight monthly declines and was the largest gain since it rose by 12.4 per cent in March 2007.

The report found the higher cost for food and shelter led the upward pressure on prices. The biggest year-over-year price increases were detected for meat at 12.4 per cent and natural gas, which climbed by 10.8 per cent.

Statistics Canada also said inflation increased in six provinces in the 12 months leading up to February, with Ontario registering the biggest gain at 1.3 per cent.

On a seasonally-adjusted basis, the consumer price index was up 0.2 per cent in February, following decreases of 0.2 per cent in January, December and November.

Last month, Bank of Canada deputy governor Agathe Cote said in a speech that the turbulence of the oil slump could briefly push inflation into negative territory.

But Cote stressed that the central bank sees no reason for concern about outright deflation, which would only follow a sustained period of widespread price declines.

The bank tries to keep inflation close to an ideal two per cent target. It can adjust its benchmark overnight interest rate to help keep the economy close to that mark.

For February, the core inflation rate, which excludes some volatile items such as gasoline, slipped to 2.1 per cent, after increasing 2.2 per cent the previous month.

Statistics Canada also said Friday that total retail sales for January fell 1.7 per cent to $41.36 billion.

 

— Staff/Canadian Press