Key takeaways:
- On average, national rent gains are approximately one-third the size of P.E.I.’s.
- $30 in June had the buying strength of $27.05 compared to June last year.
For the first time in a year, the yearly inflation rate on P.E.I. lost in June — but at 10.9 percent, it stays the highest in Canada.
The rate was down merely 0.2 percentage points, meaning the price of a standard basket of products and services was not rising as fast as the month earlier. The region saw the inflation rate drop in June last year, from 6.0 to 5.3 percent.
The national inflation rate was 8.1 percent in June, up from 7.7 percent.
P.E.I.’s inflation rate has been the highest in the nation since March of 2021 and, like the rate across the country, has been growing steadily.
In February of 2021, the yearly inflation rate in the region was 1.4 percent, typical of the low rates the area has witnessed for decades. But by April, it had increased to 5.3 percent, and it has stayed further five percent ever since.
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While the overall rate was little changed, there were changes in what type of goods and services pushed the trends.
The inflation rate for fuel oil dropped 38 percent but still sat at an astounding 74.1 percent.
Other aspects that have contributed significantly to inflation on the Island grew in price again.
Grocery inflation increased to 11.6 percent, gasoline to 63.4 percent, and rented housing to 12.7 percent. Rent has been a significant factor driving P.E.I.’s inflation rate over the national average.
In April, the yearly inflation rate for rented housing was 15.3 percent, compared to only 4.2 percent for Canada. The P.E.I. rate dropped to 9.0 percent in May while it remained intact nationally.
Source – CBC News
