Inflation fails to inflate
The headline inflation rate in Alberta was 2.7% in June compared to 3.1% in May
By Rob Roach, ATB Economics 28 July 2021 1 min read
Although still high, Alberta’s inflation rate slowed somewhat in June. According to Statistics Canada’s Consumer Price Index (CPI), Alberta’s year-over-year inflation rate was 2.7% in June compared to 3.1% in May. Excluding gasoline, Alberta’s CPI increased by 1.7% in June versus 1.9% in May.
Interpreting the decrease in Alberta’s inflation rate is a bit tricky because we are comparing prices to where they were 12 months earlier when the pandemic was severely dampening price growth (we even had deflation in April when prices in the province contracted by 0.5%). As a result, the 3.1% increase in May is relative to an unusually low base whereas June’s 2.7% rise is relative to a more typical starting point.
In any case, we didn’t see the dramatic spike in the inflation rate that some commentators were fearing. It is, however, still early days in terms of the economic recovery, so this could change.
Nationally, the inflation rate went from 3.6% in May to 3.1% in June. It was 2.2% excluding gasoline.
Answer to the previous trivia question: At 39.1 billion in revenue in 2020, Enbridge Inc. is the largest business in Alberta.
Today’s trivia question: An item that cost $1 in 1914 would cost how much today due to inflation?