Alberta gas tax pause helps, but latest inflation stats still 'worrisome': Economist
New data shows record-high inflation across the country but in Alberta, huge increases were at least somewhat softened by new provincial government policy.
Statistics Canada said Wednesday that its national consumer price index for April rose 6.8 per cent compared with a year ago, up from a gain of 6.7 per cent for March.
In Alberta, the rate declined from March to April, from 6.5 to 6.3 per cent.
Economists believe it's a change largely spurred on by a provincial gas tax holiday.
"Gasoline, instead of adding on to accelerating inflation, actually subtracted a little bit from those inflation rates," said University of Calgary economist Trevor Tombe.
"I think (the gas tax pause) lowered inflation by about 0.4 points."
In April, Premier Jason Kenney announced a temporary stop to the collection of that levy. It's estimated to save Albertan drivers about 13 cents for every litre of gas they buy.
Fuel prices in the province are still high, sitting around a year-over-year increase of 26 per cent.
And there are other things still drastically impacting inflation -- and pocket books -- this year.
Food costs in the province were up by 7.7 per cent in April, compared to 6.8 per cent in March.
"Food is an increasingly important contributor to inflation," Tombe said. "It is almost now as important a driver of a high inflation as gasoline is."
Meat, bread, pasta and fruit costs spurred much of the increase.
Supply chain bottlenecks, shortages and passed-down farming costs are partially to blame. Russia's invasion has also put upward price pressure on food products that use wheat, Statistics Canada said, while poor weather in growing regions has also impacted prices.
Real estate and cost of accommodation were further inflation drivers in Alberta. Part of the latter can be chalked up to energy and increasing natural gas prices.
But the increasing cost of energy also helps the province. Tombe is convinced it'll lead to a large surplus, which can sometimes trickle down to consumers.
"It is indeed difficult to see directly what implications government surplus has for your household's bottom line, but when government revenue -- especially in Alberta from oil and gas royalties -- is high, taxes in the future are going to be lower than they otherwise would be," Tombe said.
"So there is some trade-off there between how much weight you put on the short-term cost versus the longer-term benefits that we accrue fiscally through the government."
The opposition New Democrats believe the main takeaway from the Statistics Canada data involves living wages.
An NDP release points to inflation rising 4.5 per cent more than the increase in wages in Alberta on a year-over-year basis. That's compared to 3.5 per cent nationally.
Elsewhere nationally, there was very little good news for consumers. The federal rate of inflation was the highest since January 1991. The annual rate then was 6.9 per cent.
CTVNews.ca Top Stories
BREAKING Israel attacks Iran, Reuters sources say; drones reported over Isfahan
Israel has attacked Iran, three people familiar with the matter told Reuters, as Iranian state media reported early on Friday that its forces had destroyed drones, days after Iran launched a retaliatory drone strike on Israel.
American millionaire Jonathan Lehrer denied bail after being charged with killing Canadian couple
American millionaire Jonathan Lehrer, one of two men charged in the killings of a Canadian couple in Dominica, has been denied bail.
Nearly half of China's major cities are sinking, researchers say
Nearly half of China's major cities are suffering 'moderate to severe' levels of subsidence, putting millions at risk of flooding especially as sea levels rise.
Prince Harry formally confirms he is now a U.S. resident
Prince Harry, the son of King Charles III and fifth in line to the British throne, has formally confirmed he is now a U.S. resident.
Judge says 'no evidence fully supports' murder case against Umar Zameer as jury starts deliberations
The judge presiding over the trial of a man accused of fatally running over a Toronto police officer is telling jurors the possible verdicts they may reach based on the evidence in the case.
Health Canada to change sperm donor screening rules for men who have sex with men
Health Canada will change its longstanding policy restricting gay and bisexual men from donating to sperm banks in Canada, CTV News has learned. The federal health agency has adopted a revised directive removing the ban on gay, bisexual and other men who have sex with men, effective May 8.
Colin Jost names one celebrity who is great at hosting 'Saturday Night Live'
Colin Jost, who co-anchors Saturday Night Live's 'Weekend Update,' revealed who he thinks is one of the best hosts on the show.
Sports columnist apologizes for 'oafish' comments directed at Caitlin Clark. The controversy isn't over
A male columnist has apologized for a cringeworthy moment during former University of Iowa superstar and college basketball's highest scorer Caitlin Clark's first news conference as an Indiana Fever player.
'Shopaholic' author Sophie Kinsella reveals brain cancer diagnosis
Sophie Kinsella, the best-selling author behind the 'Shopaholic' book series, has revealed that she is receiving treatment for brain cancer.