February 2023 inflation report
Price growth slowed the most in Alberta
By Rob Roach, ATB Economics 21 March 2023 1 min read
Although still elevated at 3.6%, the headline inflation rate in Alberta in February was the lowest of any province and well below where it was in January when it was running at 5.0%.
Food prices, however, grew by 9.7%.
Meanwhile, the national inflation rate was 5.2% in February compared to 5.9% the month before.
While the lower inflation rate in the province is welcome news for Albertans, the Bank of Canada will be looking at the national rate when it is considering its next move on borrowing costs with an interest rate decrease remaining a dim light in the distance for now.
Lower energy prices in Alberta help explain the difference between Alberta’s rate and the national average.
Energy prices were down by 20.8% on a year-over-year basis in Alberta compared to a reduction of just 0.6% nationally.
Energy prices were, in fact, higher in every province except Alberta with increases ranging from 0.4% in Quebec to 12.5% in Prince Edward Island.
According to Statistics Canada, “child care and housekeeping services (-33.8%) also contributed to the year-over-year deceleration in Alberta in February, due to a federal-provincial agreement, as part of a national plan to reduce child care costs. At the national level, prices were down 14.2% compared with February 2022.”
Answer to the previous trivia question: Equinox means "equal night.”
Today’s trivia question: Does the Canadian Consumer Price Index include sales taxes