As we look for indicators that inflation is finally starting to slow, there are some optimistic signs contained in the latest wholesale sector report.
Wholesale traffic today finds itself on the retail shelf in a month or two so this is a bit of a bellwether of where things are headed. And the latest figures – from April – contain hints that we’re moving in the right direction.
Given that these are April figures, it probably means the downstream effect is being felt in stores right now. Especially grocery stores where prices can move very quickly. But the big drop in April was farm supplies which is not surprising given that inventories for seeding had already passed through the wholesalers’ hands.
StatsCan shows wholesale prices actually fell nearly two percentage points in Saskatchewan in April. The national decline was slightly less than what we saw but it was negative. This gives us price increases of only 2.2 per cent compared to a year ago. That kind of lift is right in the central bank’s target range so it would appear we’re making headway.
