Weak Inflation Rate Signals Relative Strength of the Economy

If you want to see the impact of tough times in the oil patch on the broader economy, just look at the latest inflation numbers. The oil producing provinces are at the bottom of the heap as prices fall in the face of weak demand caused by constricted household budgets.

StatsCan has just released the September numbers showing Saskatchewan’s inflation rate or Consumer Price index at 1.7 percent. Only Alberta and Newfoundland – the country’s other major oil and gas producers – had lower rates.

For those who have warned that promises and goals laid out by some of the federal parties to undermine or curtail oil production in the country, this is evidence to support their arguments. Oil has long been a major generator of wealth and revenue, money incidentally that has helped support the Canadian dollar. Since we’ve been challenged to get oil to market and a cross section of politicians have vilified the industry, the Canadian dollar has fallen by about 10-percent which, in turn, has made imports such as fresh fruit and vegetables more expensive for everyone in Canada.

Source: https://www150.statcan.gc.ca/n1/daily-quotidien/191016/t002a-eng.htm