Gas prices have everyone smiling at the pump and also seems to have been a big contributor to shrinking Canada’s inflation rate.
StatsCan is reporting inflation is down to 2% nationally, taking a tumble twice what was forecast by economists, .4% as opposed to .2%.
Gasoline prices are nearly 6% lower than what they were this time, last year and is sitting at an average of 99 cents at pumps across the country.
“Gas prices are a factor there,” says Analyst Julie Charest. “It has slowed down a lot on a year-over-year basis, compared to other provinces.”
It isn’t just gasoline that’s affecting inflation. Here in B.C. there are some other factors that come in to play, “We saw meat prices increase 9.8% year-over-year in November,” Charest says. “As well, electricity prices rose, prices for telephone services, and cigarettes.”
However, Charest points out “Some of the things that contributed to downward pressure in BC are furniture, travel tours, and gasoline.”
Last month, B.C. had the lowest economic growth, but StatsCan says we are out of the basement and showing a turnaround of 1.1% to 1.2% from October, which is higher compared to other provinces.
“This month, P.E.I. is the province with the lowest year-over-year increase and Ontario is the highest, so B.C. is somewhere in between ,” Charest says.
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