The new inflation numbers caught observers off guard when they fell from January’s 2.9 per cent to 2.8 per cent in February — but they were a lot lower than that in Saskatchewan.
There had been a consensus among economists heading into Tuesday’s report that we would see an inflation or consumer price index (CPI) rate above three per cent last month. That, of course, led to speculation that interest rates would not be falling in the near term and might even have to go up again.
So, when the actual numbers were released by StatsCan, and it showed a reduction in the CPI, there was something of a sigh of relief.
But when you dig down a bit, you find that inflation is largely a Quebec and Alberta problem. Those two exceeded the national number. Everyone else was below it — and quite a bit lower in some cases.
Saskatchewan, for example, posted an annual rate of 1.9 per cent. So we’re below the next benchmark or target range established by the Bank of Canada while Manitoba was even lower — below one percent. Out here, inflation is already under control.
