Prices in Saskatchewan continue to increase at a rate not seen in decades.
In February, inflation on an annual basis within Saskatchewan reached 4.7 per cent, the highest it’s been since September 1991, according to on March 15. In January, the rate was 4.2 per cent
Nationally, the inflation rate was 5.7 per cent year over year, up from a 5.1 per cent gain in January. Statistics Canada said it was the largest gain since August 1991.
In a note, the war in Ukraine had an impact on prices.
“The outlook for inflation is clouded by the fog of war. Commodity price volatility has soared in recent weeks. Prices skyrocketed at the outset of the conflict, but have since fallen back,” he said. “It is difficult to predict with any confidence their path from here, but it will depend in no small part on whether the conflict escalates further or moves toward peaceful resolution.”
Porter expected higher inflation in March even if prices are more stable.
“Prices are running well ahead of income growth, but with a robust labor market, nominal wage growth is also showing signs of accelerating.
Among the provinces, Saskatchewan was tied with B.C. in having the lowest increase in the inflation rate.
Within Saskatchewan, gasoline saw the highest increases, jumping 31.7 per cent from last year. In January the rate was 31.2 per cent.
Food went up 6.2 per cent, compared to 5.4 per cent in January. Shelter went up 4.1 per cent, compared to 4.2 per cent in January.
“Rising commodity prices increase inflation and hurt consumers but are not necessarily negative for the Canadian economy overall, whose producers benefit from higher prices that are born in part by our trading partners,” Marple said.
“As such, they should do little to dissuade the Bank of Canada from normalizing monetary policy.”
