Inflation eases following Ottawa’s HST holiday

Inflation eased slightly in December, coming in at 1.8 per cent year over year, a drop from 1.9 per cent in November.

Statistics Canada released the numbers on Tuesday as part of its monthly consumer price index.

The data factored in the federal government’s GST rebate on select items, which began in mid-December. Inflation in all of those specific indexes — including food from restaurants, beer and wine, toys and children’s clothing — fell.

The report said prices for toys and games dropped 7.2 per cent and children’s clothing costs dropped 10.6 per cent.

Despite the slower rise, last year was the highest increase since 2011, excluding spikes after the pandemic, according to the latest Statistics Canada data.

“Prices are still higher than they were two, three years ago,” said Dozie Okoye, economics professor at Dalhousie University. “Much, much, much higher.”

He said the latest CPI data is unsurprising, and in line with the Bank of Canada’s target.

Inflation in Nova Scotia was 0.9 per cent year over year, increasing only half as much as the national rate.

Inflation is still higher in the Atlantic provinces than the national average.

“That’s always been the case because Nova Scotia is a bit isolated from central Canada,” Okoye explained. Goods imported from other parts of the country have a farther distance to travel, which increases prices.

Transportation

Transportation costs in Canada increased by 2.3 per cent, while gasoline was up 3.5 per cent nationally.

Food

Food prices increased by 0.6 per cent. A main contributor to the low increase was that restaurant prices decreased by 1.6 per cent.

Rentals

Rental costs were up 7.1 per cent, which is down from November’s figure of 7.7 per cent. “However since December 2021, rent prices have increased 22.1%,” the Statistics Canada report said.