A break in gasoline prices and a few deals at the mall drove inflation down in Alberta again in November, with consumer prices inching up 2.1 per cent from a year ago.
While deals were sure to be had at the gas pump, where prices were down 12.4 per cent, consumers did have to dig a lot deeper for necessities such as fresh fruits and vegetables, natural gas and shelter costs.
ATB Financial senior economist Todd Hirsch attributed the price jump in fruits and veggies in part to a weaker Canadian dollar.
However, he noted November's overall inflation rate is a continuation of a downward slide that started in June, when inflation in Alberta was 4.4 per cent.
"Alberta's inflation figures are being swept lower by falling commodity prices, especially crude oil and gasoline, but also by softer consumer demand," he said.
Still, Canada's inflation was two per cent in November, the first time in two months that Alberta's inflation edged higher than the nation's.
Released Friday, Statistics Canada's Consumer Price Index for November showed that the price of food in Alberta was up 7.3 per cent on a year-over-year basis, led by a 29 per cent jump in fresh vegetables and an 18.8 per cent jump in fresh fruit.
The price of cereal puffed up 15.2 per cent, and meat, excluding poultry, rang in 12.6 per cent higher. Natural gas rose 6.4 per cent. Shelter costs were also up, 4.3 per cent.
Calgary saw a 2.4 per cent rise in consumer prices in November on a year-over-year basis, while Edmonton had 2.2 per cent.
Yellowknife was the highest at 4.7 per cent, and Saint John, N. B., the lowest, at 0.7 per cent.
Regionally, still-booming Saskatchewan experienced the greatest price pressure with the annualized
rate rising to 3.2 per cent. Last week, the Bank of Canada cut its trendsetting lending rate by 75 basis points to 1.5 per cent in an effort to stimulate the economy.
"Overall, this somewhat complicates the Bank of Canada's outlook, as by our calculations it seems as though core CPI could remain above the two per cent level for several months to come," said Charmaine Buskas, economics strategist at TD Securities.
"That said, the bank is still going to focus on alleviating the strains on the economy due to the global economic recession and ongoing turmoil in the credit markets," she added.
Gina Teel, Calgary Herald; With Files From CanWest News Service;
Published: Saturday, December 20, 2008
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