INFLATION UP 1.4% IN SASK.
Second-highest increase among provinces
Without CCS technology, Saskatchewan would eventually have had to shut down its entire fleet of coal-fired generating stations, which account for 37 per cent of Sask Power’s generating capacity of 4,181 MW. Bruce Johnstone
The price of a basket of goods and services — better known as the consumer price index (CPI) — increased by 1.4 per cent in Saskatchewan in October over the same period last year, the second-highest increase in inflation among the provinces, according to Statistics Canada.
“Consumer prices rose in nine provinces in the 12 months to October. Manitoba posted the largest increase, followed by Saskatchewan and Alberta,’’ the federal agency said its monthly CPI report Friday.
Nationally, lower gasoline prices partially offset the rise in the cost of food in October as the consumer price index rose 1.0 per cent compared with a year ago. The 1.0 per cent increase in the consumer price index matched the increase for September.
The same factors were at play in Saskatchewan, except for higher shelter costs, said Doug Elliott, publisher of Sask Trends Monitor. “It’s the same story as in September,’’ which also saw a 1.4 per cent increase in the rate of inflation, Elliott said. “We’re still seeing the same mix of higher grocery costs (up 4.0 per cent) and lower transportation costs (down 1.6 per cent).”
Elliott noted that shelter costs, in particular rent and home ownership costs, which increased 2.7 per cent year over year in October, seemed to be driving inflation to higher levels in Saskatchewan than most other provinces.
However, economists cautioned that inflation will start making a comeback in the coming months as we pass the point when gas prices headed lower last year.
“Headline inflation should move higher in the months ahead, but even with core trending around two per cent, the Bank of Canada will be focused on the path of the economy in determining the course of monetary policy,” CIBC economist Nick Exarhos wrote.
“And on that front, concerns remain, with renewed weakness in commodity prices posing fresh challenges for the Western Canadian outlook.”
The Bank of Canada’s core index, which excludes some of the most volatile components, was up 2.1 per cent from a year ago, matching the increase in September. The BOC uses a target range of between one and three per cent for inflation.
However, despite core inflation persistently above the two per cent level, the central bank has said the weak loonie has boosted prices, while underlying inflation is sitting below two per cent.
Statistics Canada said prices were up in seven of the eight major components measured on a yearover-year basis, led by higher food costs.
Food prices were up 4.1 per cent compared with a year ago, boosted by the cost of food bought in stores, which increased 4.6 per cent compared with last year.
Offsetting the increase was the transportation index, which fell 3.2 per cent compared with a year ago due to a drop in the price of gasoline.