Alberta sees highest energy price increases as Canada's inflation climbs to 4%
Canada's inflation rate once again climbed in August, prompting some Calgarians to make tough decisions about their spending.
"It's stressful, right? Like I have a wife looking to have children in the near future but it's almost, it's off-putting to want to have children because how am I going to provide for them?" Craig Steward said.
John Burley added, "It's just about trying to make ends meet for the budget and trying to pick and choose what you do, like no sports activities or less Flames games, less doing things out on date night, things like that."
Canada's inflation rate rose to four per cent in August from 3.3 per cent in July.
Gas prices are driving the increase, rising 0.8 per cent from last August — the first yearly increase since January.
"Oil prices increased in August to over $80 a barrel, and we haven't seen it reach that level since last year, so it's a pretty big change over the lower prices that we previously saw, and that's entirely the reason for the increase," said Trevor Tombe, economics professor at the University of Calgary.
Alberta's inflation rate is even higher than the national average at 4.3 per cent.
Energy prices also increased the most in Alberta, going up just over 13 per cent year-over-year in August, following a nearly eight per cent drop in July.
Tombe, however, says not to read too much into that.
"The price of many energy products in Alberta is lower than what we see elsewhere. It's even lower now in August this year — if you look just at gasoline alone — it's lower here than it was last August," he said.
But Tombe says electricity is the exception.
According to Statistics Canada, electricity prices rose almost 122 per cent in Alberta this August compared to last, following a large price increase in July.
The end of the province's electricity rebate program is a big part of that.
Nathan Neudorf, Alberta's minister of affordability and utilities, says he recognizes that the benefit of high oil prices needs to be passed down from the government to all Albertans.
"Making sure that affordability and the cost of living, key input costs like utilities, are managed and brought down to their lowest, most competitive level and that's what what we're going to do to make sure Albertans see the benefit of that," he said.
Deborah Yedlin, president and CEO of the Calgary Chamber of Commerce, wants affordability measures like electricity rebates and the gas tax suspension to continue.
"There's a bigger bite being taken out of consumers' pocketbooks, and so they're going to think about where they allocate their capital, where they're going to spend their money and you know, that's businesses that are going to be affected by that," she said.
For Bank of Canada watchers, Tombe says this latest data is somewhat concerning since the main core measures of three-month average inflation, which is what the central bank looks at when setting interest rates, all rose above four per cent for the first time since last year.
"But I think it might be too early at this point to judge whether any further interest rate increases are on the horizon," he said.
The Bank of Canada will make its next interest rate decision on Oct. 25.
CTVNews.ca Top Stories
More than 115 cases of eye damage reported in Ontario after solar eclipse
More than 115 people who viewed the solar eclipse in Ontario earlier this month experienced eye damage after the event, according to eye doctors in the province.
Toxic testing standoff: Family leaves house over air quality
A Sherwood Park family says their new house is uninhabitable. The McNaughton's say they were forced to leave the house after living there for only a week because contaminants inside made it difficult to breathe.
Decoy bear used to catch man who illegally killed a grizzly, B.C. conservation officers say
A man has been handed a lengthy hunting ban and fined thousands of dollars for illegally killing a grizzly bear, B.C. conservation officers say.
B.C. seeks ban on public drug use, dialing back decriminalization
The B.C. NDP has asked the federal government to recriminalize public drug use, marking a major shift in the province's approach to addressing the deadly overdose crisis.
OPP responds to apparent video of officer supporting anti-Trudeau government protestors
The Ontario Provincial Police (OPP) says it's investigating an interaction between a uniformed officer and anti-Trudeau government protestors after a video circulated on social media.
An emergency slide falls off a Delta Air Lines plane, forcing pilots to return to JFK in New York
An emergency slide fell off a Delta Air Lines jetliner shortly after takeoff Friday from New York, and pilots who felt a vibration in the plane circled back to land safely at JFK Airport.
Sophie Gregoire Trudeau on navigating post-political life, co-parenting and freedom
Sophie Gregoire Trudeau says there is 'still so much love' between her and Prime Minister Justin Trudeau, as they navigate their post-separation relationship co-parenting their three children.
Last letters of pioneering climber who died on Everest reveal dark side of mountaineering
George Mallory is renowned for being one of the first British mountaineers to attempt to scale the dizzying heights of Mount Everest during the 1920s. Nearly a century later, newly digitized letters shed light on Mallory’s hopes and fears about ascending Everest.
Loud boom in Hamilton caused by propane tank, police say
A loud explosion was heard across Hamilton on Friday after a propane tank was accidentally destroyed and detonated at a local scrap metal yard, police say.