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Gas prices inflate the rate of inflation: Statistics Canada

Pump prices played a big role in putting annual inflation at 2.4 per cent in December, Statistics Canada said Tuesday.

That’s higher than the two per cent rate recorded in the last two months.

Higher gasoline prices were cited as the main reason for the growth in inflation last month — they were up 13 per cent from December one year ago.

The inflation rate, excluding gasoline, would have been 1.8 per cent, Statistics Canada said. Transportation prices, which include gasoline, were up 4.9 per cent. This also factored in a 4.3 per cent rise in car insurance and vehicles that were 1.5 per cent more expensive.

Shelter costs were up 2.7 per cent even though mortgage interest costs were down 2.5 per cent.

Food costs rose 1.7 per cent from a year before, and health and personal care was 2.3 per cent more expensive.

The only major category to see an annual price decline was clothing and footwear, where prices fell two per cent.

 

Annual inflation rates by province in December:

Newfoundland and Labrador 2.5%

Prince Edward Island 1.5%

Nova Scotia 2.7%

New Brunswick 1.8%

Quebec 1.6%

Ontario 3.3%

Manitoba 1.2%

Saskatchewan 2.0%

Alberta 0.8%

British Columbia 2.4%

Overall 2.4%

Source: Statistics Canada