Alberta consumers still feel the pinch from high inflation rate

While the rate of inflation continued to cool in Canada in December, in Alberta consumers continue to experience one of the highest inflation rates in the country.

According to Statistics Canada, the Consumer Price Index, which includes a basket of goods such as food, shelter, clothing, transportation, education and alcohol, increased by 1.8 per cent in December 2024, compared to December 2023.

That’s down just slightly from the 1.9 per cent in November compared to a year earlier.

However, in Alberta the inflation rate in December of last year was 2.5 per cent — that’s the second-highest inflation rate in Canada.

Only British Columbia at 2.6 per cent had a higher rate.

Statistics Canada says food purchased from restaurants and alcoholic beverages purchased from stores contributed the most to the decline, crediting the temporary break on the GST that went into effect on Dec. 14.

The price for children’s clothing also experienced a significant decline, while increases in the cost of shelter (housing) remain “elevated” nationally, but slowed slightly in December.

Amongst Canada’s large cities, Vancouver led the way with an inflation rate of 3.2 per cent, but Edmonton at 2.7 per cent and Calgary at 2.4 per cent weren’t far behind. Calgary’s inflation rate in December 2024 was down from 3 per cent in November, while Edmonton’s remained the same.

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The monthly inflation rate will play a part in whether or not the Bank of Canada’s decides next week to approve another cut in Canada’s prime interest rate, following a half-percentage-point cut in December.

2:01 Alberta’s and Calgary’s inflation rates top the nation

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