Edmonton’s Consumer Inflation Rate Slows in May
June 22, 2012
Edmonton’s consumer prices continued to increase in May, but the rate of inflation slowed again, largely due to softer energy prices. Statistics Canada figures released June 22, 2012 show a slowing trend that started at the end of 2011 is continuing in 2012, as Edmonton’s annual consumer-based inflation rate slowed from 1.0% in April to 0.4% in May.
“Lower gasoline prices combined with flat housing and food costs contributed to the continuing fall in the consumer-based inflation rate,” said John Rose, City of Edmonton Chief Economist.
Edmonton CMA’s consumer-based inflation rate peaked at 3.5% last October and has been going down, ever since. The rate of inflation was 3% in May 2011, compared to 0.4% in May, 2012.
The same slowing trend is occurring provincially, as Alberta’s annual consumer-based inflation rate also slipped between April and May, falling from 0.8% to 0.4%.
Nationally, the slowing of the inflation rate over the 12-month period from May 2011 to May 2012 was even more significant, down from the 2.0% to 1.2%. Lower energy costs – particularly for gasoline – and a reduction in apparel costs contributed to the slowdown in national inflation.
“Besides softer energy prices, other measurable components of the CPI that have been influencing the moderation of inflation in Edmonton over the past 7 months include unpredictable food and gasoline prices,” added Rose. “That could be changing though, as preliminary data for June shows an upswing in energy prices, which could signal a return to inflationary values in the Edmonton region closer to the 2% range for the summer months.”
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Chief Economist, Financial Services and Utilities