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Ward 1 News: Inflation review - February 2017

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Ward 1 official websiteFebruary 2017
Inflation Review

• Headline inflation in Calgary was a soft 1.06 per cent in February. There was an unusual gasoline price war in Calgary last February. Compared to last February today’s gas prices look exceptionally high. If we correct for that gas war then headline inflation in Calgary looks to be even softer at about 0.7 per cent. We expect next month’s inflation report to reflect gasoline prices without reference to that gas war and as such to be near the 0.7 per cent mark.
• Low inflation in Calgary is the result of significant decreases in food prices, particularly beef, fruits, and vegetables as well as reduced prices to rent accommodation. There are some inflationary pressures but they are limited to gasoline prices, recreation prices and transportation costs.
• Alberta’s inflation rate came in at 2.2 per cent as other parts of the Province are not experiencing quite the decreases in rental prices that Calgary is. Across Canada the average inflation rate in February was 2.05 per cent, slightly lower than Alberta’s despite the significant price increases in rented and owned accommodation particularly in Ontario. The national inflation rate is in line with the Bank of Canada’s target inflation so there is no local pressure for the Bank of Canada to raise interest rates even though the U.S. Federal Reserve raised the U.S. Reserve Rate last week.

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This content represents the personal views and opinions of the Councillor and should not be taken as a statement of policy of The City of Calgary. The inclusion of any external content does not imply endorsement by The City of Calgary.

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