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Consumer prices softer in July

Consumer prices softer in July

Posted on: 8/18/2017 | Author: ATB Financial's Economics + Research Team

Aside from an improving economy, shoppers in the province have more reason to feel optimistic and keep spending. That’s because the price of goods and services in the province continues to show little inflationary pressure.

In July, Alberta’s Consumer Price Index showed that the prices were unchanged from June. Compared to one year ago, the price of goods and services has only increased one per cent, falling well below the Bank of Canada’s target of two per cent. As of July, Alberta’s inflation rate sat a fifth of a per cent below the rest of the country.

The biggest price movers in Alberta from a year ago include energy as well as clothing and footwear and alcoholic beverages. Energy, which includes natural gas, fuel oil, gasoline and fuel, parts and accessories for recreational vehicles grew close to five per cent from last year. The price of that new fall sweater and boots is also a bit more expensive, but likely not noticeable. Clothing and footwear has increased about 2.5 per cent. Compared to 12 months earlier, the price of alcoholic beverages grew at a similar pace (+2.4 per cent).

A lower inflation rate is great news for shoppers, but too low could cause people to sit on their wallets and wait for a better deal in the future. The current inflation rate in Alberta is lower than the Bank of Canada’s target, but will likely pick up pace as our economy rebounds.

Annual CPI inflation, graph?

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