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Consumers pinched hard in March

Alberta's inflation rate hit 6.5% last month

By Rob Roach, ATB Economics 20 April 2022 1 min read

According to Statistics Canada, headline inflation in Alberta went from 5.5% in February to 6.5% in March.

The last time the Consumer Price Index was this high in Alberta was in February 1991.

Consumer price growth also accelerated nationally, going from 5.7% to 6.7%.

The increase was broad-based with the March  inflation rate in Alberta higher in seven of eight major categories than it was in February. Shelter costs were the exception, with the rate for this category going from 6.6% in February to a still eye-popping 5.6% in March.

Food prices were 6.8% higher than 12 months earlier while energy costs were 30.7% higher. When food and energy are excluded, core inflation in Alberta came in at 4.3%.

The high rate of inflation is linked to a range of factors including “sustained price pressure in Canadian housing markets, substantial supply constraints and geopolitical conflict, which has affected energy, commodity, and agriculture markets.” Vigorous consumer demand and lower unemployment are also supporting higher prices.

The Bank of Canada’s most recent forecast has inflation in Canada averaging 5.3% in 2022, up from its previous forecast in January of 4.2%. The Bank’s target inflation rate is 2.0%. The inflation rate in Alberta was 1.7% in 2019.

Answer to the previous trivia question: The Organisation for Economic Co-operation and Development (OECD) has 38 countries as members.

Today’s trivia question: How many carats was the largest rough diamond of gem quality ever found?

Alberta's inflation rate rose to 6.5% in March 2022

Alberta's inflation rate rose to 6.5% in March 2022

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