What propelled Alberta's record-high inflation last month?

Prices in the province last month grew at a much faster pace than the rest of the country due, in part, to high natural gas prices.

"[natural gas price] ...which accelerated on a year-over-year basis in February (+15.1 per cent) compared with January (-18.7 per cent)," Statistics Canada reported. 

The Alberta Utilities Commission, which lists the rates for variable regulated gas charges per gigajoule, shows that Feburary's gas rates were some of the highest since May 2023.

Variable regulated gas charges chart by the Alberta Utilities Commission (AUC) (Graphic credit to Alberta Utilities Commission (AUC))

The AUC's shown rates in the chart are only the monthly commodity rates for natural gas, 'and do not include other charges on your bill such as distribution, transmission or other rates applicable in your service area.'

According to the Statistics Canada Consumer Price Index (CPI) report, inflation in Alberta last month was 4.2 per cent, when compared to February 2023. Alberta outpaced the national CPI by 1.4 per cent more. 

"..CPI rose 2.8 per cent on a year-over-year basis in February, down from a 2.9 per cent gain in January. Notable contributors to the deceleration included the indexes for cellular services, food purchased from stores, and Internet access services."

Price growth for groceries eases in February. (Graphic credit to Statistics Canada) 

Despite a lower inflation rate when compared to January, StatsCan cited a year-over-year increase in gasoline prices, which rose 0.8 per cent in February, following a decrease in January. 

"On a monthly basis, the CPI rose 0.3 per cent in February, up from 0.0 per cent in January. The largest contributors to the monthly increase were higher prices for travel tours and gasoline."

Canadians paid less for their cellphone bills and internet, and it appears that food inflation is also slowing.

"Prices for food purchased from stores continued to ease on a year-over-year basis in February (+2.4 per cent) compared with January (+3.4 pr cent)". 

However, the report noted that despite food price growth slowing, prices continue to rise.

"From February 2021 to February 2024, prices for food purchased from stores increased 21.6 per cent."

Price growth for food purchased from stores slows below headline Consumer Price Index (CPI) (Graphic credit to Statistics Canada) 

On Thursday, the province announced that starting April 1, the provincial fuel tax would be reinstated in full. 

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